Income Tax Returns?

Question

Re Stock & Share Sales. I don't have to send in Tax Returns - I'm old. I would like to know this:- if one SELLS a share and receives over £10,000 (even if it means a Net Loss) do they have to inform the Inland Revenue. I ask this because it was like that say 10 years ago. At that time it was in the part to do with either dividends or capital gains.
Please don't guess this answer. If such a thing still exists is it now at higher rate?
I hope someone knows because I have gaps in my memory now.

Answer 1

The rules are that you have to complete the capital gains supplement if any one of the following apply -

1. The taxable gains exceed the annual exemption, or

2. The total sales proceeds of chargeable assets sold exceed four times the annual exemption (regardless of whether any tax would be payable), or

3. If you wish to make certain claims, e.g. to claim losses to carry forward to futute years.

But these only apply if you are required to submit a return. Rereading your question I assume you are not currently in the self assessment system. In this case you are obliged to inform the Revenue only if you will have a tax liability. This notification should be made by the 5th October following the end of the year of assessment.

Answer 2

look at the info:

Whether or not you need to pay CGT when you dispose of shares depends on your total gains for the tax year. This includes the gain on the shares and gains on the disposal of any other assets that attract CGT.

CGT is charged on total gains after:

deduction of the costs of acquisition and disposal of each asset
taking into account any reliefs that affect the amount of a gain - some apply automatically others have to be claimed
deduction of allowable losses arising from the disposal of other shares or assets
applying 'taper relief' - this may reduce the taxable gain on an asset depending on the nature of the asset and how long you've held it
deducting from the total taxable gains left the 'annual exempt amount' (AEA) - for the tax year 2006-2007 this is £8,800

Much more advice on the site. 2nd link is to the share area.