Capital Gearing Share Chat (CGT)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Capital Gearing	LSE:CGT	London	Ordinary Share	GB0001738615	ORD 25P

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-24.00p	-0.61%	3,941.00p	3,941.00p	3,970.00p	3,970.00p	3,941.00p	3,950.00p	4,609	16:35:06

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
Equity Investment Instruments	1.4	0.7	18.3	215.8	187.95

Capital Gearing Share Discussion Threads

Showing 8076 to 8098 of 8100 messages

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Date	Subject	Author	Discuss
20/7/2017 19:59	The stonebanks.co.uk website includes translation routines so that you can run your data on both calculators. I think that you can be reasonably confident if they both give the same result - within a few £s due to rounding errors.	david77	Read Full Thread Reply
20/7/2017 15:06	1MB, You'll also need to consider position for prior tax years as if your disposals have amounted to 4x annual CGT allowance you should have filed a CGT return for those years (regardless of being under the annual gains allowance). Based on current allowance of £11.3k if disposals amount to >£45.2k for 2017/18 you are required to file a CGT return. At 100 trades per year that's an average of just £452 per trade to hit the reporting threshold (or £904 per disposal if the '100 count' includes both acquisitions and disposals).	m_k_hubbert	Read Full Thread Reply
20/7/2017 13:30	Hello all I need to book a CGT loss for 2016/17 and have been advised as i havent completed a self assesment previously that i need to write to HMRC advising the calculation resulting in the loss. I made round 100 trades that year resulting in the loss does anyone know if i just summarise this or have to detail every trade? Thanks in advance	1mb	Read Full Thread Reply
27/5/2017 23:51	thanks guys. I'm going to assume my previous losses are booked in the system and see what happens!	jimblack513	Read Full Thread Reply
27/5/2017 06:15	jim, I have always done the same on line and have never heard from them. It is lodged I beleived as I subsequently get my tax repayment so they know about it. I also attach a pdf scheduling out my gains and losses.I have had losses carried forward and utilised and kept all contract notes should they ever want to visit me.	brancho	Read Full Thread Reply
26/5/2017 21:05	I have always sent paper forms. The CGT summary is SA108. I suggest that you get a copy of the notes, then Box 45 - Losses brought forward and used in-year and 47 - Losses available to be carried forward I am not qualified to give advice, but these appear to be the place to show your loss brought forward from the previous year. Good luck	david77	Read Full Thread Reply
26/5/2017 19:14	I'm filling out my return for 16-17. I had a big capital loss in 15-16 and I want to offset some of it against capital gains in 16-17. When I filled out my application online for 15-16 my capital loss was recorded at some stage during the process. Is that enough for my loss to be banked? Is it now in the system? Or do I have to fill out a specific form to book my capital loss for 15-16? Thanks in advance.	jimblack513	Read Full Thread Reply
10/5/2017 16:48	hTTps://www.taxinsider.co.uk/681-How_to_Correctly_Gift_Property_to_Spouses.html See this bit - "Stamp Duty Land Tax Stamp duty land tax is not charged on the value of inter-spouse/civil partner gifts as long as the property is not mortgaged." If you gift a mortgaged property, SDLT will be payable on the value of any outstanding mortgage to the extent it exceeds the SDLT threshold. hTTps://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#gift	jeffian	Read Full Thread Reply
10/5/2017 14:56	The rule that there is no CGT on transfers between spouses (or civil partners) is specific to CGT, and it's not actually a rule that such transfers are exempt from CGT. Instead, it's a rule that such transfers will be deemed to have happened at the value that gives the transferor neither a gain nor a loss - i.e. at precisely the sum of all the transferor's allowable costs. That of course has the same effect as an exemption from CGT would have as far as the question of how much CGT is payable on that transaction is concerned - zero in either case. But it leaves no loose ends to be tidied up by further rules, whereas an exemption from CGT would - it would leave one spouse with an asset whose acquisition isn't 'visible' to CGT. As a result, it would need a rule about what the transferee's allowable costs are (for any transfer) and one about what the transferee's acquisition date was (for the rules about matching disposals of shares to acquisitions) - maybe others I haven't thought of. With the actual rule, the answers to those two questions are easy: the transferee's allowable costs are the value at which the transfer is deemed to have happened, their acquisition date is the date of the transfer. The relevance of all that to your question is that while a rule that transfers between spouses were exempt from CGT would have an obvious extension to other taxes, and so might reasonably be thought to be a special case of a more general rule about taxes in general, the actual rule works in terms of a CGT-specific concept, namely the allowable costs of an asset. As a result, it has no obvious extension to other taxes. And as far as I am aware, there is generally no such extension to other taxes. In particular, I don't know of any rule saying that transactions between spouses are exempt from stamp duty, nor do I have any reason to believe it's likely that there is such a rule. Having said that, I know very little about stamp duty. So don't take what I've said above as saying there is no such rule - there might be. It's just saying that your argument by analogy with CGT doesn't work - i.e. the "logically" in your last sentence is no such thing... Sorry! Gengulphus	gengulphus	Read Full Thread Reply
09/5/2017 21:04	I apologize that my question is Stamp duty and not Capital Gains but it is similar. A friend of mine and his wife let a house that they lived in for several years before buying their current home.They have a fixed term buy to let mortgage on their original home but this is coming up for renewal.My friend is a top rate tax payer but his wife doesn't work as they have 3 young children.I suggested to him that he should increase the mortgage on their current home and payoff the buy to let mortgage. If he then transferred the rented house into his wifes name all of the rental income could be set off against her personnel tax allowance.His mortgage adviser however has told him that she would have to pay stamp duty on half of the value of the house. I have always been under the understanding that transfers between husband and wife were not subject to taxes. Does anyone have experience of such a situation and what the correct tax/duty situation is? If the mortgage adviser is correct then logically my friend would have to pay capital gains on the value of the house at the time of transfer to his wife?	renew	Read Full Thread Reply
04/5/2017 14:19	And ditto.	finkwot	Read Full Thread Reply
03/5/2017 15:17	A belated thank you Geng' for the answer to my query.	deans	Read Full Thread Reply
27/4/2017 10:56	What happens if there simply is no record? Do HMRC assume zero cost? You produce an estimated cost, put some sort of explanation of the estimate in the appropriate 'additional information' box, and tick the box saying that you've used an estimate. You want the estimated cost to be as high as possible, so that the gain over it is as low as possible. All HMRC do is look at the estimate and decide whether to challenge it - which they're likely to do if they think it's too high, but not if they think it's too low. Using an estimated cost of £0 is quick, easy and safe. You may be able to produce a safe higher estimate - e.g. if you know that the shares were bought during a particular period but don't know exactly when or how much was paid for them, then the number of shares times the lowest share price in that period is a safe estimate. But that does require researching what that lowest share price was, so involves more work than an estimate of £0. One does have to exercise some judgement about whether trying for a higher estimate is likely to be a worthwhile use of one's time. E.g. if it's only reasonable to expect to be able to raise the estimated cost by a couple of hundred quid, then the CGT saving at 20% is about £40 - which probably doesn't justify spending more than an hour or two on it (depends on the value you place on your time, of course!). If it's a matter of raising the estimated cost by a couple of hundred thousand quid, on the other hand, it might be worth spending quite a bit more time on it - and probably even some money on a good tax adviser... Gengulphus	gengulphus	Read Full Thread Reply
26/4/2017 16:05	The trades being on the same day may have been because at that time it was a 20-minute drive each way to the bank to sell shares, presumably involving taking time off work. The sale was at 209p and the purchase at 212p, so there must have been some reason - if that was his idea of daytrading I would have much less work to do now :-)	finkwot	Read Full Thread Reply
26/4/2017 13:19	A bit of googling has thrown up the fact that independent taxation of married couples was introduced in April 1990, resulting in them have a CGT allowance each rather than one CGT allowance shared between them. Not certain how that might lead to a same-day sale and repurchase of a shareholding in March 1990 being a good move, but there might be some sort of connection... Possibly to establish which spouse owned it going forward? Gengulphus	gengulphus	Read Full Thread Reply
26/4/2017 13:07	If a stock was sold and repurchased on the same day in 1990, before the 30-day rule was introduced, does the cost for CGT purposes derive from the purchase price on that day, without reference to either the sale price on that day or the original, earlier, purchase price? The 30-day rule doesn't apply to a sale and repurchase on the same day - only to purchases on the next 30 days after the date of a sale. However, that's only because there are the same-day rules, and had been for a long time before the 30-day rule was introduced - I think, but am not 100% certain, ever since CGT was introduced. (That's why the 30-day rule is sometimes known as the 'anti bed-and-breakfasting' rule: 'bed-and-breakfasting' was the practice of selling just before the market closed one day and buying back just after the market opened the following day in order to realise a desired gain or loss without running into the same-day rules and with minimal time spent out of the market.) The same-day rules are applied to every day that one acquires or disposes of shares before applying any other rules to any date. They basically say: 1) If there are multiple acquisitions on a day, merge them into a single acquisition of the total number of shares for the total costs. 2) If there are multiple disposals on a day, merge them into a single disposal of the total number of shares for the total disposal proceeds and costs. 3) After doing steps 1 and 2, there is at most one acquisition and at most one disposal on any day. On any day that there is both an acquisition and a disposal, match them to each other in the usual way - i.e. if they're of equal numbers of shares, calculate a gain or loss from them and remove both the gain and the loss from further consideration; otherwise, apportion the larger into a part that matches the smaller (with a gain or loss being calculated from that part and both the smaller and that part being removed from further consideration) and a 'remainder' part, which remains under consideration. So by the end of applying the same-day rules, there is at most one transaction on any day - there can be an acquisition, a disposal or neither, but not both. Then, and only then, do all the other rules come into play, saying basically that you work through the disposals in date order, trying to match them first under the other rules. Those other rules have varied over time: before 6 April 1998, I believe they were just matched to the 'Section 104 pool' of earlier, as-yet-unmatched acquisitions; from 6 April 1998 to 5 April 2008, they were first under the 30-day rule, then under a 'last in, first out' rule for acquisitions between those dates, then under the 'Section 104 pool' rule for earlier acquisitions; since 6 April 2008, it's first under the 30-day rule, then under the 'Section 104 pool' rule. Background: I'm trying to calculate potential CGT liability on a holding in RDSB which was acquired when Shell took over British Gas last year. The BG. holding goes back into the mists of time, probably to privatisation, but I don't have records before 1990. However, the entire holding was sold and bought back on one day in March 1990. If that lets me out of trying to find non-existent earlier records I'll be glad. The calculations are bad enough as it is, with 27 years of mergers, demergers, consolidations and B shares. So I'm afraid that the answer is probably that the same-day sale and repurchase in March 1990 are matched to each other under the same-day rules. However, as the above indicates, I'm not 100% certain about when the same-day rules came in - I think that they were probably there from the start of CGT, as "which shares did I sell?" was a question that pretty obviously needed answering from the start and things could get pretty complicated without the same-day rules or something pretty similar. But my knowledge of CGT doesn't extend back to 1990, so I don't actually know... A same-day sale and repurchase of the holding seems a bit odd for a holding that's still around 27 years later - one indicates a 'trading' approach, the other a 'long-term holding' approach, and the two aren't usually compatible with each other! Furthermore, March is a plausible month for tax manoeuvres aimed at beating changes that are being introduced in the tax year starting the following April 6th. So I do wonder whether there was some CGT change then that made the same-day sale and repurchase worthwhile... Gengulphus	gengulphus	Read Full Thread Reply
26/4/2017 12:15	Transfers between spouses do not constitute disposals for CGT purposes - such transfers therefore don't count towards reporting threshold. I'm afraid the first part of that is not true: for CGT purposes, transfers between spouses do count as disposals by the transferor and acquisitions by the transferee. The special rule that applies to transfers between spouses (or civil partners) is not that they're somehow not disposals and acquisitions, but that the transferor identifies which assets they're disposing of (by the normal share identification rules in the case of shares) and adds up their allowable costs, and the transfer is deemed to happen at the resulting total regardless of what was paid (or usually not paid!) for them. The net result is that the transferor's CGT calculation works out as zero (i.e. their total allowable costs for the assets concerned minus their total allowable costs for the assets concerned), and the transferee effectively 'inherits' the transferor's allowable costs. It's sometimes known as the 'no gain / no loss' rule, and that's an accurate description - there is a disposal, but the rule ensures that it realises neither a gain nor a loss. As to how much that disposal contributes towards disposal proceeds for the tax return's requirement to report capital gains and losses if disposal proceeds exceed 4 times the CGT allowance, I'm afraid I don't know. It's pretty clearly one of zero (i.e. not contributing to it), the sum of the allowable costs that the transfer is deemed to happen at, or the market value of the asset on the date of the transfer (which I think possible, but pretty unlikely). I do think though that one could pretty safely count it as not contributing - even if one is supposed to use one of the other two methods, it would require quite a pedantic tax inspector to haul one up for it and even if they did, I cannot see more than a "well, you know now, so don't do it again" slap on the wrist being justified. So it's only the first part of the answer that I'm disagreeing with. One can get in a real mess if one assumes that a transfer to one's spouse doesn't count as a disposal for CGT purposes, because that assumption leads to one having more undisposed-of shares for CGT purposes than one actually owns. E.g. suppose one buys 2000 shares at £5 each, then transfers 1000 of them to one's spouse, then (more than 30 days later) buys another 3000 shares at £10 each, and that one eventually sells the resulting holding of 4000 shares for £15 each. With the transfer counting as a disposal, it matches half of the original acquisition, leaving one with the other half of that original acquisition (1000 shares with base cost £5k) and all of the later acquisition (3000 shares with base cost £30k). The CGT computation on the final sale matches the 4000 shares sold to all of those, so the resulting gain is £60k - (£5k + £30k) = £25k. If the transfer didn't count as a disposal, one's undisposed-of shares would be all of the original 2000 (base cost £10k) plus all of the later 3000 (base cost £30k), a total of 5000 shares with base cost £40k. The share matching rules would say that the 4000 sold were matched to 80% of them, so the capital gain would be £60k - (80% * £40k) = £28k - and you'd be left with a ghostly 1000 undisposed-of shares with a base cost of £8k... Gengulphus	gengulphus	Read Full Thread Reply
26/4/2017 11:08	Gengulphus, your point re 'difficulties Executors could face if they were required to work out capital gains for assets held for many years' is most valid...and in the recent past I've been thankful when dealing with a relative's Estate to only have to consider valuation at date of death. In case of another relative, fortunately still living, I've had to go back to March 31, 1982 to establish acquisition price of Diageo (then Grand Metropolitan Hotels) and further adjust for other corporate actions over the past 35 years - messy to say the least. You don't need to tell me! Though in my experience of the issue (some forced disposals in the tax year before death), fortunately I only had to go back about 15 years... Still quite a task! The best solution I've found for assets where it would be extremely problematic to determine 'pool cost' is to stagger disposals over more than 1 tax year so that the reporting thresholds in any single tax year are not exceeded, currently £11.3k gains or £45.2k disposal proceeds; in this way nothing needs to be reported. Yes, indeed - as I said, it might be worthwhile to sell enough each tax year to use that year's CGT allowance. Though I should have mentioned not exceeding the disposal proceeds limit as well. One other comment on that is that when multiple assets are involved and it's a matter of choosing which to sell, it may be worth giving priority to "defusing" the difficult ones. E.g. if one has two long-held shareholdings worth say £30k each, one with an easy history saying that it's a £20k gain on a £10k base cost, and the other with a difficult-to-research history, the best move might be to sell £11.3k worth of the latter, on the principle that the gain on it cannot exceed the disposal proceeds (the CGT base cost cannot go negative). It doesn't maximise use of the allowances, but if it can done for a couple of tax years, that history won't ever need researching! One other point that I should have mentioned in my original reply is that if you're planning to sell for this sort of "CGT defusing", it's generally a good idea to wait to do it in the last few weeks of a tax year (this is a rather badly-timed question!). Otherwise, it could be embarrassing to carefully use up your CGT allowance on selling one asset and then have a forced disposal on another! [Edit] Above approach may only work where there are gains. In order to claim losses it's necessary to work out the 'pool cost' regardless of whether reporting threshold was crossed. Well, there's no real point in "defusing" losses anyway. You might as well just keep the loss-making assets until you need the loss because you've been forced to realise gains in excess of the allowance, or until the loss turns into a gain, or until death. Of course, when there's an unknown history, one might not know whether a holding is standing on a gain or a loss. The general approach I would take if I only had limited information about a holding's history is to work out the maximum unrealised gain there can be on it by assuming that the base cost of the holding at the earliest time I can trace the history back to was £0, then calculate forward from that. E.g. if there was a holding of 4000 shares, and I knew the last two transactions on it were a sale of 1000 shares and before that, a purchase of 2500 shares for £4 each, with the history of the other 2500 shares unknown, then: * The 2500 shares with an unknown history have a base cost of at least £0. * So after the buy, the 5000 shares have a base cost of at least £10k. * So after the sale, the remaining 4000 shares have a base cost of at least £8k, and so the gain on selling them is at most what they're sold for minus £8k. If that ends up saying that the gain is at least a negative amount, that means that it's certain to be a loss, and there's no "CGT defusing" reason for selling. Otherwise, one has to either work on the basis that it's a gain of the maximum amount it could be or do further research into the holding's history. Finally, I should add that all of the above is only about "CGT defusing" reasons for selling. There may be other reasons for selling, and if so, they should generally be given priority - as the old saying goes, don't let the tax tail wag the investment dog! (Though watch out for the rare occasions when the "tail" and "dog" roles are swapped. For example, a shareholding in Royal Bank of Scotland purchased 10 years ago and held ever since might only be worth around 5% of its purchase value, while assuming a 20% CGT rate, the CGT saved by realising and claiming the capital loss might be worth 20% of 95% = 19% of its purchase value...) Gengulphus	gengulphus	Read Full Thread Reply
26/4/2017 06:27	MKH thank you.	deans	Read Full Thread Reply
25/4/2017 12:57	This one should (I hope) be straightforward. If a stock was sold and repurchased on the same day in 1990, before the 30-day rule was introduced, does the cost for CGT purposes derive from the purchase price on that day, without reference to either the sale price on that day or the original, earlier, purchase price? Background: I'm trying to calculate potential CGT liability on a holding in RDSB which was acquired when Shell took over British Gas last year. The BG. holding goes back into the mists of time, probably to privatisation, but I don't have records before 1990. However, the entire holding was sold and bought back on one day in March 1990. If that lets me out of trying to find non-existent earlier records I'll be glad. The calculations are bad enough as it is, with 27 years of mergers, demergers, consolidations and B shares. Thanks	finkwot	Read Full Thread Reply
25/4/2017 11:38	Thanks Gengulphus - great answer, yep. If he was to have to go into a home it would get interesting! kind regards tt	targatarga	Read Full Thread Reply
25/4/2017 11:26	Transfers between spouses do not constitute disposals for CGT purposes - such transfers therefore don't count towards reporting threshold.	m_k_hubbert	Read Full Thread Reply
25/4/2017 06:21	Many thanks Gengulphus for all the hard work you put in on this thread. My query is related to the last post. If you transfer stock to your spouse does the value of that stock count towards the reporting threshold? Cheers	deans	Read Full Thread Reply

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