> Could someone explain what purpose is served by declaring capital
>> gains amounting to less than 7,700 if the value of assets sold was >> over 15,400? >
> Probably because the IR might want to check your calculation. CGT is
> complex, it would be very easy for people to fail to declare, and
> then if the IR came back later to say that they thought the gain was
> less than the allowance. The total transaction amount is much simpler
> and it would be pretty hard to claim that you made a mistake. I doubt
> that they care if you are just over the threshold, but if you had a
> turnover of 100k they might be more suspicious (although at the
> moment it would still be quite easy to have losses!).
I suppose that seems reasonable. I've been unemployed since March 2002 and sold some shares during last year worth over 15,400 for living expenses but didn't make anywhere near 7,700 in gains:-((
Given that, I didn't even bother worrying about taper relief or whatever the term is that applies these days (if any, on shares). So my calculation is very simple - CG = Sale Value - Purchase Value. It doesn't really get much easier than that.
I just couldn't see what use it would be to declare the sale on my form. But if that's what they require.........