General Betting
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22 Jan 10
08:49
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Date Joined:
10 Jan 02
My brothers got 130,000 x 0.10 CAD shares (bought nearly 6 years ago) in my brother-in-law's business in Canada. They are now thought to be worth 0.2 CAD each. When he bought them you got over 2 CADs to the pound. It's now more like 1.70 CADS to the pound.
1) Is he supposed to pay capital gains on the money he made due to the change in exchange rates.
2) Can he claim capital gains allowance for all 6 years or does he just get it for this year.
3) Since I'll just be transferring money from my uk account to his uk account it's unlike the ir will pick up on anything but if he dodges the tax what's the likeliehood I'll end up getting hit with it once I flog them.
1) Is he supposed to pay capital gains on the money he made due to the change in exchange rates.
2) Can he claim capital gains allowance for all 6 years or does he just get it for this year.
3) Since I'll just be transferring money from my uk account to his uk account it's unlike the ir will pick up on anything but if he dodges the tax what's the likeliehood I'll end up getting hit with it once I flog them.
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Replies: 33
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* it's unlikely the ir will pick up on anything
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Guess you'll need the Tory cityboys to help out on this one.
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lol Lori. They don't deal in such trivial amounts.
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As far as I know you don't pay any tax unless you cash them in and the capital gains goes in the tax year that you cash them in.
Then the exchange rate is not really relevant, the gain is what you got (£'s) less what you paid (£'s). |
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Thanks Cran. Just to clarify, you're saying he can only offset the profit against the current year's capital gains allowance and the gain he made due to the exchange rate is part of the profit?
What I can't understand is this. Suppose I also bought the same number of shares at the same time as he did and the shares gained value of around 15% each year. If I bought his shares after a year he wouldn't have to pay any tax because the profit would be below his capital gains allowance for that year. If that's the case, then what's to stop us selling each other our shares at the end of every year so that when it came time to cash them in no tax would be due? |
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Maybe you can cash in up to capital gains limit this year and then cash in the rest next year.
Easiest thing is probably ring up the tax office and ask. |
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Well well well.......
Someone who is always spouting on about people not paying thier 'fair' share to betfair is now soliciting for advice on how to avoid paying his 'fair' share to the UK government. Oh the irony...... As for the advice, I haven't paid any capitol gains for a number of years but when I did, The form asked for a value in £ at time of purchase and at time of sale, net of all costs. So the currency fluctuations are irrelevant, and net would mean net of currency charges. If its a substantial ammount seek the advice of a good accountant, be aware that there are plenty of crap ones about some of which don't even know how to fill in anything but the basic forms. |
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Thanks Escapee, if you read the opening post it's not me who's trying to avoid the tax. Anything I've got to pay tax on I donate to charity so they can claim the tax back. The government would only use it to bail out financial sector parasites so that they can come back and shaft us all over again. B@STARDS.
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FNE - If you are married you can consider buying shares between you......so when they are sold both of you can claim the TAX EXEMPT allowance...........Of course you then have to weigh up what happens if you divorce !!!!!!
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Thanks DFC.
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You have made you bed on here, Feck....
Never will you be able to post or ask a question on any subject without the thread deviating onto one or another bf issues! |
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lol Muqbil. Fairly mild so far.
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http://www.cgtcalculator.com/
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Thanks commander. The links on that page more or less cleared things up. I still don't understand why you can't use previous year's allowances as it seems you could sell them at the going rate then buy them back at the same rate every year and get an allowance each year.
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That was known as 'Bed and Breakfasting' and was a very common practices until the loophole was closed ( in the late 90's IIRC )
Now there is a minimum 30 day lapse between selling and buying back an equity or item for capital gains tax purposes. |
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Would that represent a problem though Escapee? You sell them to your wife, she pays any cgtax on anything above her allowance then sells them back to you 30 days later.
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There's a section on it here http://www.hmrc.gov.uk/budget2006/bn27.htm
but I still don't see why the 30 day rule fecks it up. |
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Sell some in Late march and the rest early april. Little price fluctuation but 2 seperate tax years
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I'm sure people still find many ways of legally avoiding the burden of thier 'fair' share Feck.
Just like there are many ways to have a bet on an exchange... but some people constantly refer to them as parasites. Lots of people have double standards so I wouldn't be to hard on yourself about your own. |
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Thanks LLM.
Escapee, can you read. I'm the buyer not the seller. And you're still a fkng parasite. |
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Hello Mr Eejit. The Motley Fool site is most excellent for this type of query.
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Thanks Norma. Where have you been?
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The grim reaper thought he had got me, but I told him to feck off and as luck would have it, he blinked.
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Feck.... Yes I can read, but your own reading comprehension seems to be impaired by your urge to insult me.....
Check my posts again, nowhere do I refer to you as either a buyer or a seller I've been nothing but civil in this thread, The same cannot be said of you. |
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Are you claiming some sort of moral high ground because you're the buyer not the seller ?
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Someone who is always spouting on about people not paying thier 'fair' share to betfair is now soliciting for advice on how to avoid paying his 'fair' share to the UK government.
This is civil? How could I avoid paying my fair share when I'm not due to pay anything? |
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In fact i totaly understand that cause at least in my opinion the Money is better off with BF than the Government... !!!
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Feck N. Eejit 22 Jan 18:57 Someone who is always spouting on about people not paying thier 'fair' share to betfair is now soliciting for advice on how to avoid paying his 'fair' share to the UK government. This is civil? How could I avoid paying my fair share when I'm not due to pay anything? Yes it is civil, And again your reading comprehension lets you down....... I didn't say you were avoiding paying your fair share I said " is now soliciting for advice on how to avoid paying his 'fair' share" |
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is now soliciting for advice on how to avoid paying his 'fair' share
To me the 'his' is a reference to the person soliciting for advice. If you think otherwise then you definitely can't read. Admit it Escapee. Your posts on this thread have been nothing more than digs with a little bit of info thrown in to give the appearance of civility. |
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The grim reaper thought he had got me, but I told him to feck off and as luck would have it, he blinked.
Hopefully he didn't leave you in a bad way Norma. |
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But you are Soliciting for advice on how to avoid paying your 'fair' share......
........ but if he dodges the tax what's the likeliehood I'll end up getting hit with it once I flog them. And you do rant on and on and on and on and on about other people not paying thier fair share Admit it, you've got double standards As mugpil points out, "you made your bed....." |
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Hopefully he didn't leave you in a bad way Norma.
Thanks for that. He took some, but not enough to get me. Feck, I enjoy reading your threads, you are one argumentative fecker, but usually, you have a case. |
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Thanks Norma. I had a fright myself just over a year ago but it's made me buck up my ideas health wise.
but if he dodges the tax what's the likeliehood I'll end up getting hit with it once I flog them. Escapee, again you can't read, that refers to me getting hit with his tax bill (the only alternative would be to drop him in it). |