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CGT is it relevent


4Nines7Hills

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I have a question regarding CGT. On this forum I keep hearing that for most people CGT isn't an issue as it wont won't effect them but I'm not so sure ... What's your opinion.

right now CGT is a little over £11000 and it's true ill never get anywhere near that today but

if you buying gold to sell up for your retirement and that's 20 years from now what is a probable scenario

in 2000 CGT allowance was 7300 but gold was $200 an Oz.

 

if i had bought just 12oz of gold in the year 2000 and sold up this year I would be eligible to CGT

do there likelyhood is buying gold now and selling in year 2040 we will also hit CGT very quickly .

in relative terms the CGT alliance is getting far less generous

 

rhetorical question how much gold do you have is it more than 12oz ?

 

how much gold per year would you need to sell in 2040 to keep  your standard of living  for reference a loaf of bread was 52p in year 2000 versus £1.24 in 2016

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Don't sell it all in one go :)

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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It's relevant if these people who are predicting massive gold price revaluation are correct, if the likes of Jim Rickards is correct and gold goes to $10,000 a oz is right then someone with just a few ounces is instantly in the CGT bracket, highly unlikely however.

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I'm not a fruit loop who thinks Gold will go sky high just stating that since year 2000  breads gone up three times gold gone up five times but CGT had gone up only 0.5 times in the same time frame. so your CGT will be as useful as a states pension in 2040

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Its all down to planning. I believe with some peoples stack sizes, if they sold it within one financial year they would probably smash the limit.

All part of planning your exit strategy. With planning CGT should not be an issue. If your intent is to hit 60 and sell 10's to 100's of Oz's of gold, a big part of your plan should be CGT free coins. But like all investing being diverse never hurts

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haven't really got a plan at the moment,

I intend to keep everything until retirement if possible then if needed sell maybe one or two coins a month to top up the pension approx 6oz which judging by the last 20-30years (gold going up cgt staying static) May get me near or over the threshold

 

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Capital Gains Tax or CGT is a tax on the gain or profit you make when you sell anything, give away or otherwise dispose of something.

It applies to assets that you own, such as bullion, shares or property.

There's a tax-free allowance and some additional reliefs that may reduce your Capital Gains Tax bill.

Most bullion investors will never have to pay this tax due to the size and value of their investment however, it is important that investors know where they stand.


Capital Gains Tax is only payable if an investor realises over £11,000 of profit in one financial year.

Be mindful that the £11,000 limit is not the total value of selling your bullion, but purely the profit made from your original outlay.

For example, if an investor brought some gold in 2013 for £30,000 and sold it in 2014 for £41,000, no Capital Gains Tax would be due as only the £11,000 profit made is taken into consideration.

However, this single transaction would constitute the investors full tax free allowance for the year and any other profit made would be taxable at a rate between 18-28%.

Please note the tax free limit of £11,000 is only set for the financial year of 2013-2014 and is reviewed every year.

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CGT will not apply the vast majority of people here on forum

If you are fortunate enough to be in such a position to be worried by CGT it would be my hope you will be paying a very good accountant a decent fee yearly for his expertise so that you minimise what you pay to big daddy government

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10 minutes ago, Paul said:

CGT will not apply the vast majority of people here on forum

If you are fortunate enough to be in such a position to be worried by CGT it would be my hope you will be paying a very good accountant a decent few yearly for his expertise so that you minimise what you pay to big daddy government

Disagree with that

Gold low in the last 5 years £695, Gold high is last 5 years £1132

OK, buying at the low and selling at the high is highly unlikely. however with the last 5 years alone, you'd need to sell 26oz's of gold (in one financial year) to hit CGT

I say "26ozs of gold" like its nothing, but if we are looking at retirement pots its very possible

 

With silver 5year high/low it works out at 786oz need to sell within one financial year to hit CGT

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CGT is a problem, but not where gold is concerned and you keep your wits about you.

The first rule of gold stacking is the same as the first rule of Fight Club ;)

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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cgt is not just for gold, any asset that you sell for a profit

counts against your cgt allowance for that year. I doubt

the cgt allowance will rise to keep up with the devaluation

of currency. that year 2000 loaf has doubled in currency

terms, but it's still the same loaf(freshly made). half of it

would be classified as profit/capital gains.

I vote sovereign. (because you don't know what the future

holds)

 

HH

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@HawkHybrid CGT isn't keeping up with inflation that's the problem when it is but it's not keeping up with the cost of living, which I'd what's important   Breads tripled in price rump steak has nearly trippled in price probably everything else has in the world but CGT hasn't it's not even doubled .

 

@SoulUK I'm looking at twenty - thirty years in the future not five

 

@Paul I understand the CGT rules that's why I'm worried Gold was $200 an Oz twenty years ago now it $1000 which is $800 cgt alone

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For anyone hoping to retire / live off their gold in 20+ years time but worried about CGT here is a suggestion -

Until that time it more likely that you are not currently using all of your annual CGT allowance and that of your partner if you have one.
A day or two before the end of each tax year you sell enough gold up to the limit of your CGT allowance(s) remembering it is the profit and not the value of the transaction that counts and the first day of the new tax year you buy it back.
On the assumption you are selling enough to be showing a gain of £10 - £20k I am sure HGM or someone would be happy to work with you on a very low buy/ sell margin.
Each year you repeat this process.
If your decide, strategically to sell some at a loss then you can carry the capital losses forward so sell more the following year.

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With silver forums, visits abroad carrying your PMs as lucky charms, collectors fairs, coin shows, pawnbrokers, antique shops anonymous ebay accounts available for purchase, fully verified paypals possible, replica photo driving licenses available via darkweb, bitcoin, facebook groups, gumtree, craiglists (usa), fellow stackers you have met & dealt with over your stacking history.  

Anyone who is still worried about CGT is lacking lateral thinking and creativity, if you know what i mean :rolleyes:

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Say you buy your 1oz gold coin today & sell it for 20 thousand pounds in 20 years time, you'd owe CGT.

If you buy your 1oz gold coin in 20 years time for 20k and sell shortly after, there's no CGT to pay.

Does CGT payments rely on reciepts for when you have purchased your gold?

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This is something I have thought about, I have always fancied the 'Silvertanner Collection of Sixpences' to go as a named collection at one of the auction houses however selling in one go like this (in 20 years or so) is going to give a big CGT bill!

I know I should sell a few each year but that is not as exciting?

ST

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Businesses use a tax loop hole when they use last in first out for assets that fluctuate like oil and gold silver,  is this applicable to personal individuals 

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On 12/18/2016 at 11:43, MickB said:

Say you buy your 1oz gold coin today & sell it for 20 thousand pounds in 20 years time, you'd owe CGT.

If you buy your 1oz gold coin in 20 years time for 20k and sell shortly after, there's no CGT to pay.

Does CGT payments rely on reciepts for when you have purchased your gold?

How could they prove that you didn't buy it the year before you sold it for about the same price.

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So the best way to avoid CGT is to stick to coins issued by your own country (UK for myself). My foreign coins would be first to offload when the time is right, thanks to the tax laws. 

The CGT allowance will have to rise at some point as there could be a scenario where it wouldn't be beneficial to own any foreign coins of a substantial size or amount. This would surely hit the coin collecting scene in a big way, probably resulting in small sized coins being the ones only viable to buy for a collector.

It's more than likely a long way off from now but we just don't know where the markets will take us. 

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