A few questions about capital gains tax?

[Stacktastic]

I have a few question that would be quicker to get answered on here: 

I understand capital gains is set at £12k unless under and ISA? What is gold hits 10k an ounce and I have already filled up my ISA. 
I then sell 5 oz of gold privately on here, or in person - is it my duty to report this on my tax return or directly to the government?
Whats stopping me not reporting it other than the law? I guess if it's through a bank it might get flagged, but if someone paid in cash, or an asset?

I know this is fraud so its just a question really as i have sold a lot of CGT free silver & am buying Scotsdales over a period of time. 
Just wondering if I should keep buying UK stuff?

Also Lets pretend I made £500,000 betting on Gameshop last week? Would my broker flag this and report it
or can I cash out the money, buy gold & not tell anyone? Would the bank flag it? 

And lastly, what if I swapped £200,000 of gold to buy a house, boat or 10 x models/mistresses? 😛
If the seller is OK can they just give the house to me and not say anything?? Again I wont do this, and probably wont have the opportunity. 

And lastly - might be better as a separate post, but how can my children inherit my wealth and not get clobbered for tax legally??
House, metals, stocks and stuff?? II guess set up a LTD company or trust??

I really think people dont think about this and end up pissing away 1/4 of thier money when they die -
That is criminal IMO, especially if they have been decent law abiding, tax and fee paying people for 60+ years!

Or anything else I have overlooked really?? 

[Bumble]

When you sell your gold it is a chargeable event and any gain you make is taxable. Similarly for anything you own, apart from your main residence, car, or personal items of jewelry. Sovereigns and britannias are exempt. If your total gains in the year exceed the £12k limit, it is your responsibility to complete a tax return and declare it.

Banks will flag large movements of money, but I've no idea how large is large these days.

Swapping gold for a house is a form of barter. It would count as a disposal and the gain would be the difference between the price you paid for the gold and the current market price. Gifts are also a form of disposal, so CGT would be payable on any gains, unless it is a gift to a charity.

For inheritance tax, you are probably better off finding a good tax planner or accountant.

[Pete]

You have asked some interesting questions and if any of these are 'really' likely to impact you then you need to seek professional advice and not just believe everything you read on the forum including my comments.
CGT is charged on gains meaning profits that exceed your personal allowance, currently £12k
If you bought PMs for £10k you could sell in any single tax year for £22k before having to declare and pay any tax.
If you have a spouse you can use both allowances to £34k and repeat in the next tax year.
If you were selling PMs above the CGT threshold you could include any PMs that you overpaid, or their value has decreased, to add capital losses in order to minimise the CG.

Serious stackers are well advised to maintain good transaction records so you can verify the gain or loss.

As for handing down the family silver etc to siblings and avoiding or minimising Inheritance Tax this is a topic that is full of smoke and mirrors.
The very wealthy seem to be able to create all sorts of 'instruments' and trusts etc that mean they don't pay any tax whilst the rest of us live on a wing and a prayer.

If you die all your assets are transferred to your spouse but if you are single or both die then what ?
Since many properties are already valued above the IHT threshold literally everything else and maybe some of the value in your property is due to be taxed at 40%.
This is a minefield and if you believe you could be affected it is worth checking with tax experts but many of these sharks charge a fortune for very little advice above what you can easily research on Google. Some tax avoidance schemes might work today but in 5, 10, 20 years from now ?? The country is bankrupt so the government isn't going to look away and a socialist government for sure is going to be attending your funeral rubbing their hands.

I believe a SIPP now falls outside of IHT so the pot of cash that makes up your SIPP can be passed to spouse and siblings without being added to your estate.
Check please.
If correct you can build up a SIPP to around £1 million or whatever is now the lifetime allowance.
Also, depending on your age, health and wealth you can make gifts to siblings of any amount with the caveat that you survive the gifts by 7 years.
I believe there is a secondary caveat that enables you to gift higher amounts than the annual tax free gifts based on your income i.e. you can afford to make generous gifts and can show they are not coming from capital.  As I understand it you can gift £3,000 ( this is a guess and needs checking ) tax free to each child annually but if you have an income that you can show you live off and there is a surplus, you can add the surplus. What they don't want to see is a transfer of capital wealth to avoid tax later.

Just to reiterate  - I am no expert and everything I have said is not advice so check with professionals for verification of your own personal circumstances.

[HighlandTiger]

Easy solution, just buy gold sovereigns or gold Britannia's. They are CGT exempt. 

[sixgun]

7 hours ago, Stacktastic said:

That is criminal IMO, especially if they have been decent law abiding, tax and fee paying people for 60+ years!

Or anything else I have overlooked really?? 

i think you told me you only had UK gold and silver coins. i'm sure you did. All the others were lost in a tragic boating accident.
No worries then.
Next pirate question.

[Bumble]

I lost my bitcoin in a boating accident.

[Roy]

bitcoin is a great way to avoid inheritance tax.

 

 

[Stacktastic]

11 hours ago, sixgun said:

i think you told me you only had UK gold and silver coins. i'm sure you did. All the others were lost in a tragic boating accident.
No worries then.
Next pirate question.

Not me. I sold my boat before I had the chance of an accident. Scared the life out of me.
Im sure someone else said they had a boating accident outside of Bumble? Maybe not. 

Bitcoin is an option - waiting for a hearty pull back or crash - too risky now. 

17 hours ago, Pete said:

You have asked some interesting questions and if any of these are 'really' likely to impact you then you need to seek professional advice and not just believe everything you read on the forum including my comments.
CGT is charged on gains meaning profits that exceed your personal allowance, currently £12k
If you bought PMs for £10k you could sell in any single tax year for £22k before having to declare and pay any tax.
If you have a spouse you can use both allowances to £34k and repeat in the next tax year.
If you were selling PMs above the CGT threshold you could include any PMs that you overpaid, or their value has decreased, to add capital losses in order to minimise the CG.

Serious stackers are well advised to maintain good transaction records so you can verify the gain or loss.

As for handing down the family silver etc to siblings and avoiding or minimising Inheritance Tax this is a topic that is full of smoke and mirrors.
The very wealthy seem to be able to create all sorts of 'instruments' and trusts etc that mean they don't pay any tax whilst the rest of us live on a wing and a prayer.

If you die all your assets are transferred to your spouse but if you are single or both die then what ?
Since many properties are already valued above the IHT threshold literally everything else and maybe some of the value in your property is due to be taxed at 40%.
This is a minefield and if you believe you could be affected it is worth checking with tax experts but many of these sharks charge a fortune for very little advice above what you can easily research on Google. Some tax avoidance schemes might work today but in 5, 10, 20 years from now ?? The country is bankrupt so the government isn't going to look away and a socialist government for sure is going to be attending your funeral rubbing their hands.

I believe a SIPP now falls outside of IHT so the pot of cash that makes up your SIPP can be passed to spouse and siblings without being added to your estate.
Check please.
If correct you can build up a SIPP to around £1 million or whatever is now the lifetime allowance.
Also, depending on your age, health and wealth you can make gifts to siblings of any amount with the caveat that you survive the gifts by 7 years.
I believe there is a secondary caveat that enables you to gift higher amounts than the annual tax free gifts based on your income i.e. you can afford to make generous gifts and can show they are not coming from capital.  As I understand it you can gift £3,000 ( this is a guess and needs checking ) tax free to each child annually but if you have an income that you can show you live off and there is a surplus, you can add the surplus. What they don't want to see is a transfer of capital wealth to avoid tax later.

Just to reiterate  - I am no expert and everything I have said is not advice so check with professionals for verification of your own personal circumstances.

Thanks for all that, much appreciated. I need to look into SIPPS, that was next on the list. 
Mainly as someone said you dont get the withholding tax on some stocks. 

[Stacktastic]

15 hours ago, HighlandTiger said:

Easy solution, just buy gold sovereigns or gold Britannia's. They are CGT exempt. 

Or cutlery 😛

[RoughDog]

On 14/02/2021 at 04:06, Roy said:

bitcoin is a great way to avoid inheritance tax.

 

 

I thought bitcoin is taxed.  It says so on gov website.  

Also: -

"The Bitcoin blockchain is public. Everyone can see the transactions on the Bitcoin blockchain. It’s a public ledger. While that means someone can see what’s in your wallet, they don’t know it belongs to you, because your funds are in a pseudonymous address."