Capital Gains Tax
If you sell high value items (but not your main home or personal car) then you may have to pay capital gains tax. This also applies to investments and cryptocurrencies. There’s an explanation of what you pay capital gains tax on at HMRC.
The good news is you only have to pay capital gains tax if your total gains are above an annual exempt amount. This was £12,000 in the tax year 2019-20.
Apart from UK residential property sold after 6 April 2020, which needs to be reported within 30 days, you can report your gains on your tax return in the tax year after you disposed of the item. You do this on a capital gains page SA108.
untied Pro supports the SA108 for capital gains.
You can find the capital gains section in the app by going to: Taxes > Prepare your tax return > Income details > Capital gains
If you are returning any capital gains, HMRC ask that you enclose your computations, including details of each gain or loss. We recommend attaching a PDF to your return which you can do using untied in your browser. Contact us if you need help with this.
You can also use the any other information box on the SA108 to tell HMRC:
- if you’ve used any estimated figures
- you’re making a claim or election for losses on foreign assets
- details of any foreign gains left out of your computations
- anything you’d like to add to support your computations
- the reference number for any ‘real time’ capital gains submissions or NRCGT returns made
- details of your computations and adjustments, or an explanation if you're not attaching a computation
You can see a full list of what might go in the 'any other information' box on page 9 of the HMRC notes for SA108.
If you still have any questions, untied can help you with this - please contact us via the link below.