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yopino

Cgt On Gold?

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I wondered what the CGT on gold means exactly as I do not really understand how the taxman can calculate the gain on gold. He would have to know when I bought them etc. Also, there is a lower limit on gain to be considered for the CGT. If I were to spend my gold in small quantities, where does the tax come in then. The end of the year on the total of gold spent? very confusing...

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I wondered what the CGT on gold means exactly as I do not really understand how the taxman can calculate the gain on gold. He would have to know when I bought them etc. Also, there is a lower limit on gain to be considered for the CGT. If I were to spend my gold in small quantities, where does the tax come in then. The end of the year on the total of gold spent? very confusing...

I'm not an accountant but I don't understand why you think this is so difficult.

I don't think the taxman cares when you bought your gold - only how much money you made whe you sold it (i.e. inflation gains are taxable.) So all you have to do is add up the profit (if any) from each item sold in any tax year and tot up a total for that tax year. Deduct your CGT personal allowance and what's left (if anything) is taxable. Also, remember that sovereigns and brittanias aren't liable to CGT.

I don't see how the tax man could know how much you gained if you don't declare it but remember that in a fight with the tax man you will lose. Not worth the risk IMO.

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So all you have to do is add up the profit (if any) from each item sold in any tax year and tot up a total for that tax year.

Hypothetical question, but what if you can't remember what you paid for a specific item?

I bought some coins a couple of months ago and already I couldn't tell you exactly how much I paid without checking. After 10 years, I'd have no chance of guessing, even to within the nearest £100.

Is it a case of hanging on to the receipts, as with other aspects of tax returns?

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Hypothetical question, but what if you can't remember what you paid for a specific item?

I bought some coins a couple of months ago and already I couldn't tell you exactly how much I paid without checking. After 10 years, I'd have no chance of guessing, even to within the nearest £100.

Is it a case of hanging on to the receipts, as with other aspects of tax returns?

If you cant put a figure on it, the taxman will, and it may not be in your favour.

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If you cant put a figure on it, the taxman will, and it may not be in your favour.

Well, all I meant is that if I sell my gold within a week, I will make a loss but if I keep it for a while I might make a profit. now, Hypothetically, If I by 2 lots of coins a year from another, how can you tell what coins I am selling and whether I made a profit on the coins of 2 years old or a loss on the ones of 1 year old? All I am saying is that it is slippery territory and I do not understand it too well.

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If you cant put a figure on it, the taxman will, and it may not be in your favour.

Looks like I'll need to keep my receipts.

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Keep all your receipts! Fill in the self assessment when the time comes when you sell them. Or ask an accountant to do it for you.

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Well, all I meant is that if I sell my gold within a week, I will make a loss but if I keep it for a while I might make a profit. now, Hypothetically, If I by 2 lots of coins a year from another, how can you tell what coins I am selling and whether I made a profit on the coins of 2 years old or a loss on the ones of 1 year old? All I am saying is that it is slippery territory and I do not understand it too well.

Well obviously you make a loss?

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Hypothetical question, but what if you can't remember what you paid for a specific item?

I bought some coins a couple of months ago and already I couldn't tell you exactly how much I paid without checking. After 10 years, I'd have no chance of guessing, even to within the nearest £100.

Is it a case of hanging on to the receipts, as with other aspects of tax returns?

Here's a quote from

http://www.hmrc.gov.uk/worksheets/sa108-notes.pdf

'Then, prepare your computation of gain or loss. You will have to do this

separately for each asset sold. We require your computations and the

completed Capital gains summary pages with your tax return.'

It seems that you need those receipts.

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Well, all I meant is that if I sell my gold within a week, I will make a loss but if I keep it for a while I might make a profit. now, Hypothetically, If I by 2 lots of coins a year from another, how can you tell what coins I am selling and whether I made a profit on the coins of 2 years old or a loss on the ones of 1 year old? All I am saying is that it is slippery territory and I do not understand it too well.

Hmm. OK, that's a bit harder. Let's assume for sake of argument that you mix up your coins and don't know what was bought when. I've had a look at the IR site and asked google without success. There are 'LIFO' rules (last in first out) regarding the disposal of shares - maybe that's a good way to go when submitting your tax return i.e. your calculate tax on the asumption that the first half of the sale is based on the oldest buy price and the rest on the later buy price. I think you'll need an accountant to take this question much further.

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Hmm. OK, that's a bit harder. Let's assume for sake of argument that you mix up your coins and don't know what was bought when. I've had a look at the IR site and asked google without success. There are 'LIFO' rules (last in first out) regarding the disposal of shares - maybe that's a good way to go when submitting your tax return i.e. your calculate tax on the asumption that the first half of the sale is based on the oldest buy price and the rest on the later buy price. I think you'll need an accountant to take this question much further.

thank you for this sensible reply! seems that brittanias would be simpler then :-)

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Well, all I meant is that if I sell my gold within a week, I will make a loss but if I keep it for a while I might make a profit. now, Hypothetically, If I by 2 lots of coins a year from another, how can you tell what coins I am selling and whether I made a profit on the coins of 2 years old or a loss on the ones of 1 year old? All I am saying is that it is slippery territory and I do not understand it too well.

If the coins are sovs then there is no capital gains.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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