CGT Reporting Limit

Hi, The reporting limit changed from four times the exemption (£49,200) in the previous tax year (2022/23) to a flat reporting limit of £50,000 in this tax year (2023/24) - so any disposals above £50,000 had to be reported (if within the CGT exemption). My question is has the position now changed to a reporting limit of four times the exemption? (which would be £24,000 in the 2023/24 tax year), and only when already registered for self-assessment. The Gov.uk website (https://www.gov.uk/capital-gains-tax/work-out-need-to-pay) now states the below: You still need to report your gains in your tax return if both of the following apply: - the total amount you sold the assets for was more than 4 times your allowance - you’re registered for Self Assessment Thank you, JB

Hi
It depends on what is being sold.
If it is a UK property then no as this only needs reported if you actually have tax to pay.
Capital Gains Tax: what you pay it on, rates and allowances

Hi, Just to confirm, it is not property being sold. Could you confirm if the position has changed with regard to the reporting limit (i.e., from a £50,000 set limit to four times the allowance)? Thanks

Hi,

For the tax year 2023 to 2024 the AEA will be £6,000 for individuals and personal representatives, and £3,000 for most trustees. For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees. The measure also fixes the CGT proceeds reporting limit at £50,000.

Reducing the annual exempt amount for Capital Gains Tax

The self assessment criteria would be 1, is a tax return required for any other reason and 2, is the disposal value over £50000.  If yes to both questions, then the gain must be declared in a tax return, regardless of the type of asset disposed of.

Thank you.

Hi, Thank you for confirming the official position with regard to the reporting limit. However, this would mean the Gov website is incorrect stating the previous approach of '4 times' the proceeds, rather than the current fixed £50,000: https://www.gov.uk/capital-gains-tax/work-out-need-to-pay Is this to be rectified? Thanks

Hi
Up until 5 April 2023 the threshold was 4*£12300 = £49200.  
From 6 April the threshold changed to £50000.

@ HMRC Admin 10 Do you agree the section "If your total gains are less than the tax-free allowance" on page https://www.gov.uk/capital-gains-tax/work-out-need-to-pay is out of date and should be updated? @HMRC Admin 32 Please confirm which is currently correct. You say "The self assessment criteria would be 1, **is a tax return required for any other reason** and 2, is the disposal value over £50000. If yes to both questions, then the gain must be declared in a tax return, regardless of the type of asset disposed of." The page/section (referenced above) states "You still need to report your gains in your tax return if both of the following apply: - the total amount you sold the assets for was more than 4 times your allowance - **you’re registered for Self Assessment** " To me these are two different things - or at least very confusing if the answer is "well one implies the other". This is a crucial point for my decision making. Many thanks,

Hi Chico99,
The guidance on declaring Capital Gains Tax arising from the disposal of a residential property in the UK, in a Self Assessment Tax return, advises that two criteria must be met.
1 - A tax return is required for any other reason 
2 - In 23/24 the assets disoposed of exceed £50000 (£49200 for earlier tax years).
Thank you. 

Hi and thanks for quick reply. My query relates to share sales not property. I am registered for Self Assessment but have never requested access to it. My current Tax Year CGT "status" (share sales only) is that I have realised less than £50,000 proceeds and made an aggregate loss. On that basis I would: • have no reason to fill in a Self Assessment.  • be updating HMRC in writing regarding my aggregate “CGT” loss. However, I am considering selling more shares in this Tax Year. Let’s assume this pushes me over the £50,000 proceeds figure and either increases the above aggregate loss or possibly results in a small aggregate gain (definitely less than £6,000). The confusion arises because – leaving the threshold aside (i.e. consider it exceeded) - the second criteria is variously stated as: • “AND ‘is a tax return required for any other reason’” or • “AND ‘you’re registered for Self Assessment’”. If “share sale proceeds > £50,000 AND ‘is a tax return required for any other reason’ then I don’t meet BOTH criteria and wouldn’t expect to complete a Self Assessment. If “share sale proceeds > £50,000 AND ‘you’re registered for Self Assessment’ then I do meet BOTH criteria – even though I’ve never *used* Self Assessment - and would expect to complete a Self Assessment. Which is appropriate here? Specifically, if I went ahead and ended up with: • >£50,000 share sale proceeds; •

The confusion arises because – leaving the threshold aside (i.e. consider it exceeded) - the second criteria is variously stated as: • “AND ‘is a tax return required for any other reason’” or • “AND ‘you’re registered for Self Assessment’”. If “share sale proceeds > £50,000 AND ‘is a tax return required for any other reason’ then I don’t meet BOTH criteria and wouldn’t expect to complete a Self Assessment. If “share sale proceeds > £50,000 AND ‘you’re registered for Self Assessment’ then I do meet BOTH criteria – even though I’ve never *used* Self Assessment - and would expect to complete a Self Assessment. Which is appropriate here? Specifically, if I went ahead (with further share sales) and ended up with • >£50,000 share sale proceeds; •

Hi Chico99,
Re your question of 15/02/24:
The £50000 threshold for capital gains disposals only applies where you are required to complete a self assessment tax return for any other reason.  If you do not need to complete a tax return, then the £50000 threshold is not relevant.  Losses should still be claimed in writing.  Both criteria must be met for the disposals to be declared in a tax return.
Thank you.

Hi Chico99,
Both criteria have to be met.  This first is do you need to submit a tax return for any other reason and the second is was the disposal value over £49200 in 22/23 (£50000 in 23/24)  If you answer yes to both questions, you need to declare the gains in the tax return, ever if you have already reported the gains using the online service.
Thank you.

@ HMRC Admin 21 Many thanks for that confirmation.

Feedback .

Hello HMRC I still don’t understand why the website still says something different to your advice posted in reply above. You say the reporting limit for proceeds for tax year 2023/24 is 50000 GBP. Like the original poster I am referring to shares and not property. But the link the original poster provided continues to refer ti 4 times the allowance “the total amount you sold the assets for was more than 4 times your allowance” https://www.gov.uk/capital-gains-tax/work-out-need-to-pay Please can you clarify Thank you

Hi peacetoall Briffett,
Following a change in legislation, from 6/4/23, the reporting limit is £50,000.
The 4 times the allowance is no longer relevant.
The £50k applies to property and shares.
As yet, policy have not updated the website/guidance to show this.
Thank you. 

Many thanks