Capital Gains Tax

[Shwty]

I guess this is the authority on the matter though it appears very complicated.
Perhaps someone else knows of a site with a simpler summary.

http://www.inlandrevenue.gov.uk/cgt/

 

[chump]

Sean,
Let your acct resolve the issue for you.It's what you pay him for. The issue of primary source of income will be a major factor in determining whether or not your trading is construed to be a business.

Cheers

 

[Two Bars]

Theres a simpler summary at

www.inlandrevenue.gov.uk/rates/cgt.htm

 

[JTrader]

Cgt

Having just watched my favourite soap opera - neighbours I've thought of an idea that may enable traders to increase their net profit!

DR Karl Kennedy used to pay his (house) wife (Suzanne Kennedy) a wage - when she was at home looking after the kids. This enabled them to reduce their tax contributions.

I know that neighbours is fictional and based in Australia, but could a self-employed day trader do the same thing or a similar thing - in the UK?..............So if the trader £50,000 gross profit - can they divide it equally between themselves and their partner in wages (housekeeper) - meaning that between them they avoid/end up having to pay less higher rate taxes?

Many thanks

jtrader.

 

[sidinuk]

jtrader, that is an old trick that small businesses have used for years. Unfortunately the IR have decided to crack down on it lately.

Is Karl ever going to find out about Izzy's secret?

RIP Caketaker.

 

[JTrader]

Hi sidinuk

as I've missed a few episodes of late (I'm quite mad with myself as I've been an avid viewer since 1987 ) I don't know what the secret is. Is it that there is no baby? and is Darcy still sick in the hospital? ................tell it to me straight - I need to know one way or the other!

Cheers

jtrader.

 

[sidinuk]

well,

Izzy was knocking off Gus (Max's best friend from the rigs) before everyone found out he was a loon. Gus was forced out but Izzy then found out she was pregnant. Sooo....despite telling Karl he was a creepy old man and she didn't want anything to do with him she suddenly realised it would be quite handy for him and everyone else to believe he was the father and not Gus. But...she has to keep her hospital appointments and records hidden from Karl because they show she is more pregnant than he thinks and it couldn't possibly be his. Darcy was doing community service (mopping the floors) in the hospital after Susan got him released from prison and checked her records and discovered the truth. He was going to tell Karl but then fell down the stairs and knocked himself into a coma. Soooo...Izzy then planted her jewellery on him and staged a break in at the flat to make it look like Darcy was still an evil crim. She is now having nightmares that Darcy is out of his coma and tormenting her. Karl is slowly piecing together what she is saying in her sleep and must surely work it all out soon!

Not that I watch it much, you understand!

 

[aussietrader]

If you tell me what is about to happen in The Bill, I'll let you know if Kylie returns to neighbours.

AT

 

[JTrader]

Karl is slowly piecing together what she is saying in her sleep and must surely work it all out soon!

Thanks Sid

It's all so easy and convenient in soap land - coherent speech while asleep - I ask you!

I remember that shady Gus character - as I saw the episode when he and Max fell from the first floor of the house on the building site. It all makes perfect sense now!

AT - don't know about the bill, but another International popstar Delta Goodrum returned to Neighbours in the UK - yesterday!

Cannot believe I am having an in depth discussion about Neighbours - this must stop!

Cheers

jtrader.

 

[Altern8]

So, if I read this thread right, can I do:

register a company, like 'Kevs trading co'
get a direct access acount (from ib)
trade from home
hopefully make a few quid
pay some tax

and the wife and the tax man will be happy, and I will be happy cuz I wont be paying the high spreads from sb's.

am I about right or totaly off the scale?

Kev

 

[hampy]

How about 2 IBa/c's, one in your name one in the wife's, trade alternate days/weeks on each a/c. Therefore you get 2 lots of CGT allowance and don't pay higher rate tax until you've made
approx £70k. Only problem would be if trading in your wife's name and you get a prob requiring actually talking to someone at IB, and the wife's not around. if this involved a prob with an open trade you could of course hedge it on the other a/c or keep an SB a/c open for just such an emergency.
No idea if this would work, just a thought at the mo.
hampy

 

[JTrader]

Noyce idea hampy!

 

[LION63]

Hampy,

You do not need to open 2 separate accounts, you will find that you can have a joint trading account with your wife and it would have the same effect; if you are on good terms with the mother in law etc., you can sign them up as well. On that basis, you would not have to worry about your wife not knowing what to say when she makes a call to your broker.

 

[gullible]

Can any of the accountants within the membership help me with this quick query please?

Last October I sold a business and it is posible that a small capital gains liability may have been realised. I understand that any capital gains realised can be 'rolled over' into a new business (within a year of the sale or within the next tax year following the sale?).

I am currently in business as a freelance, self-employed writer. Can I assign any capital gain incurred from the sale of my last business to the $25K+ that I need to place in an IB account to assume PDT status if I am to make trading a full time occupation?

I hope this makes sense. I won't be seeing my own accountant until next month by which time he will have assessed any capital gains liability for the last tax year.

Seancass

assuming you had the business for at least 2 years, you will only pay tax on 25% of the gain.
Rollover relief your accountnat will explain -it is only a deferral unless you meet with an IFA they are quite creative