If you own assets like gold, property, shares or even crypto, you have asked yourself: Do I need to report capital gains or losses to HMRC?
For gold holders in particular, this is a very topical question. The price of gold has surged in the last few years and many people, especially TallyMoney customers, are now enjoying significant capital gains.
In the UK, whatever assets you hold, gains and even losses may need to be reported to HMRC.
Tracking and reporting capital gains and losses to HMRC can be complicated. However, for TallyMoney customers, it’s refreshingly straightforward. We’ve designed everything to take the heavy lifting off your plate.
But first, let’s start with the basics.
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit you make when you sell an asset that has gone up in value.
The key word here is profit. You are not taxed on the total amount you sell. You are taxed on the difference between what you originally paid and what it is worth when you sell it.
So if you own gold, there is a good chance you’re sitting on gains that may have tax implications.
How TallyMoney helps simplify Capital Gains Tax
Tracking and reporting CGT can be a headache when doing it manually. Luckily, TallyMoney streamlines the process for you. Here’s how:
- Every transaction is recorded automatically
- Designed with UK tax rules in mind
- Downloadable Capital Gains Tax statements with summarised activity
Ideal for regular savers
For people who regularly purchase physical gold, tracking and reporting capital gains (and losses) can become complex quickly.
For TallyMoney customers, regular deposits don’t come with the headache of manually tracking capital gains and losses. The app does the heavy lifting for you so you can build your tally balance consistently without worrying about how to untangle it all later.
Why this matters more now: gold’s recent growth
Gold has historically been used as a ‘safe haven’. A stable place to store value and preserve wealth. And whilst gold grows in price steadily over time, it doesn’t provide a monthly income like stocks and shares, nor does it promise short term gains.
However, in recent years, the price of gold has surged rapidly. In fact, in the last two years alone, the price of gold has more than doubled.
For TallyMoney customers (and gold holders more broadly), this is great news. But it does come with tax implications.
So, do I need to report capital gains or losses to HMRC?
Yes you may need to report capital gains and losses if any of the following apply:
Your gains exceed the annual allowance
You currently have a £3,000 CGT tax-free allowance per year. If your gains go above this, you’ll need to report it to HMRC and potentially pay tax.
Your total sales are high enough
Even if your gains are below £3,000, you may still need to report to HMRC if the total amount you’ve sold over the year is high enough.
You complete a Self Assessment
If you’re already filing a tax return, you need to declare your capital gains and losses as part of that process.
What about losses?
Nobody likes to make a loss, but losses can actually be useful.
If you sell an asset for less than you paid for it, that loss can be uses to offset gains and reduce your tax bill, or you can ‘carry it forward’ to use in future years.
In other words, losses don’t have to go to waste. They can be used to minimise your tax bill.
The important thing to remember is that in order to make use of your losses, you will need to report them to HMRC. Even if you don’t owe any tax right now, reporting them means you can benefit from them later.
To sum up
In the UK, if you own assets that have gone up in value, there’s a good chance HMRC will want to know about it. Whether it’s property, stocks, gold or crypto, if you’re sitting on capital gains there could well be tax implications. Even if you’ve made a loss, it’s still worth reporting it to HMRC, as these losses can be used to reduce your tax bill in the future.
The price of gold has surged in recent years and so reporting capital gains is especially relevant right now for TallyMoney customers (and gold holders more broadly). Thankfully, for TallyMoney customers, what was once a complicated and stressful process is now straightforward. Your records are clear, your statements are ready, and the process is quick and easy.
