MRTax

Where a trust has incurred a trade loss of around £65,000, is it restricted in claiming loss relief against other income to the £50,000 cap applicable to individuals? Different sections of HMRC Business Income Manual make reference to a "person (individual, partner or trustee)" in BIM85015, an "individual" in BIM85703 and a "person (sole trader, partner, trustee)" in BIM85761.

What is the tax position where an investor with a share account held through a broker is provided with a foreign currency account to facilitate the buying of foreign shares or holding share disposal proceeds in foreign currency. When there is a withdrawal from this account and a conversion to £ sterling is there a forex gain/loss for CGT purposes? I am aware that from 6 April 2012 there was a simplification for foreign currency bank accounts held by an individual where the gain or loss on a withdrawal / conversion to £ is exempt for CGT. What I have not been able to determine is whether that extended to an investor’s foreign currency held at a stockbroker.

Thank you for your reply. I wonder if there may still be other scenarios in which case a return would need to be completed? A) An individual has a salary of £90,000 subject to PAYE, and also some bank interest of £500 and incurred capital gains less than £12,300 although the proceeds were greater than £49,200. As salary is dealt with through PAYE and interest is within the personal savings allowance, a return would not be required and even though the disposal proceeds were greater than £49,200, only one of the two criteria was met in order for a return to be completed. Presumably, had gains been greater than £12,300 in this case, the gain should still have been reported through a real time CGT return. B) If the individual had a salary of £100,000 but the other circumstances were the same, this would require a return to be completed for that reason and even if no chargeable capital gains arose, because proceeds exceeded £49,200, the disposal details would also need to be reported in the return. C) An individual's income consisted of say bank interest £500, foreign savings interest £500 and UK dividends £1,000, they have capital disposals, the gains from which are less than £12,300 but proceeds greater than £49,200. In this case, no return would be needed as income is less than the personal allowance and there are no chargeable gains. Again, I would assume if gains were greater than the annual exemption, then this should be reported via a real time return. Is my thinking correct? Thank you.

Thank you for your response. For clarity, can you confirm that a submission is required even when there is no capital gains tax due? For example, where an individual has sold shares for, say, £50,000, that cost them, say, £45,000. The gain is less than the annual exemption, but the proceeds are more than four time the annual exemption. Would a real-time-return be required in this case?

If net gains in a year are less than the annual exemption so there is no tax liability but the proceeds are greater than four times the exemption does this need to be reported to HMRC if the individual is not in the Self Assessment system and does not complete a tax return?