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What Is Capital Gains Theft?


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🙂 another tax imposed by HMRC to squeeze the most out of people even when then make a crust.... So you pay tax to buy something and (VAT and others dependent on product) then pay when you make a profit on it ..... At least we don't have to pay it on buying Gold/Silver UK denominated coins as its CGT free (due to it being legal currency)

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6 minutes ago, Rll1288 said:

🙂 another tax imposed by HMRC to squeeze the most out of people even when then make a crust.... So you pay tax to buy something and (VAT and others dependent on product) then pay when you make a profit on it ..... At least we don't have to pay it on buying Gold/Silver UK denominated coins as its CGT free (due to it being legal currency)

So if i buy an once of gold today, and then in 10 years its worth 5x more than i paid for it and i try to sell it, how would the hmrc even know about it?

 

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Well its like any tax... its about if you declare it or not.... if the 1oz of Gold was a UK coin, like a Britannia then it doesn't matter... There is a allowance of £12.3k before you pay CGT per year I believe... if you bought a gold bar at £1300.00 then you wouldn't start to pay CGT unless it went beyond 13,600.00 (12,300.00 profit)... I think

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3 minutes ago, Rll1288 said:

Well its like any tax... its about if you declare it or not.... if the 1oz of Gold was a UK coin, like a Britannia then it doesn't matter... There is a allowance of £12.3k before you pay CGT per year I believe... if you bought a gold bar at £1300.00 then you wouldn't start to pay CGT unless it went beyond 13,600.00 (12,300.00 profit)... I think

Ah nice that's not as bad as i thought. 

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plus sell some on April 1st (current tax year) £12,300

then let new year tax year start on 6th April and then can sell £12,300 more, even though a week apart

You also have higher allowances if you are married 

If you are ever in the realms of having CGT being a worry, an accountant's fee will save you far more tax than you pay him/her for their services

Buy the right gold in first place (sovereigns/Britannia's), and its CGT free anyway (at the moment)  as @Rll1288 says above

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correct me if I'm wrong but doesn't your profit have to account for any loss in the same year as well? So if you bought some coins in 2021 and spent £5000 on them but sold another old coin at £12000 profit, your actual profit would be £12000-5000= 7000 and not £12000? 

And also be a coin which incurs CGT

 

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4 hours ago, TutoredSoup232 said:

correct me if I'm wrong but doesn't your profit have to account for any loss in the same year as well? So if you bought some coins in 2021 and spent £5000 on them but sold another old coin at £12000 profit, your actual profit would be £12000-5000= 7000 and not £12000? 

And also be a coin which incurs CGT

 

CGT is charged on gains made above 12,300.00 on a net basis so if you did as above then no CGT as you haven't made a gain above 12,300.00 and in the UK no legal tender coin attracts CGT

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21 hours ago, Relm said:

While it is the USA not the UK it will be intersting to see how far this goes https://www.fxstreet.com/analysis/congressman-mooney-introduces-bill-to-end-federal-taxes-on-gold-and-silver-202103302139

In UK legal tender, that is £ denominated gold bullion, is already CGT exempt. 

19 hours ago, TutoredSoup232 said:

correct me if I'm wrong but doesn't your profit have to account for any loss in the same year as well? So if you bought some coins in 2021 and spent £5000 on them but sold another old coin at £12000 profit, your actual profit would be £12000-5000= 7000 and not £12000? 

And also be a coin which incurs CGT

 

Not quite.  You do offset losses but cant offset costs.  The difference is a loss is only realised on selling the asset, costs are when you buy.  So if you sold coins for profit of £20k you'd pay tax on the £7500 profit.  You offset loses on some you sold for less than cost price, or losses on shares or other assets. 

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CGT is a tax that you can plan around:

- Plan to buy coins that do not attract CGT on disposa

- If you own CGT attracting gold e.g. bars then you can sell in different tax years to ensure you use your allowance

- If you are buying bars, don’t buy really big ones so you can control the amounT you sell (mostly applies to gold)

- Plan to use both yours and your partners CGT allowance (if you have a partner) when you sell

Best

Dicker

 

 

Not my circus, not my monkeys

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