Capital Gains Tax for a Ltd Co director

[smileyface]

Can someone please explain to me what are the steps to pay Capital Gains Tax, IF ONE IS Ltd Co Director?

I understand what needs to be paid, I am just confused how many steps there are.

I read one must setup a government gateway ID, then proceed.

However, as a director of a Ltd Co., do I also have to fill in a separate Self Assess Tax Return and if so, when does that need to be completed?

Thanks

[JHamp82]

Can someone please explain to me what are the steps to pay Capital Gains Tax, IF ONE IS Ltd Co Director?

I understand what needs to be paid, I am just confused how many steps there are.

I read one must setup a government gateway ID, then proceed.

However, as a director of a Ltd Co., do I also have to fill in a separate Self Assess Tax Return and if so, when does that need to be completed?

Thanks

Capital gains and director of a limited company doesn't have any direct link. You would be required to pay capital gains tax on your self-assessment unless you have sold a property I think where you have to report and pay within a certain time period.

[WTFH]

Can someone please explain to me what are the steps to pay Capital Gains Tax, IF ONE IS Ltd Co Director?

I understand what needs to be paid, I am just confused how many steps there are.

I read one must setup a government gateway ID, then proceed.

However, as a director of a Ltd Co., do I also have to fill in a separate Self Assess Tax Return and if so, when does that need to be completed?

Thanks

You're paying CGT. It doesn't matter what job title you give yourself. You do it as part of your self assessment, which you (or your accountant) need to complete each year by 31st January for the previous tax year.

But out of interest, haven't you been closing down your company for the last 6 years?
https://forums.contractoruk.com/gene...ial-relef.html
https://forums.contractoruk.com/gene...wn-ltd-co.html
https://forums.contractoruk.com/acco...wn-ltd-co.html
https://forums.contractoruk.com/gene...wn-ltd-co.html

or selling it in 2020:
https://forums.contractoruk.com/acco...ng-ltd-co.html

[smileyface]

Thanks for the responses.

One of the confusing things is when to pay.

I've read it's within 30/60 days of selling the property.

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

If you sold property in the UK on or after 6 April 2020


You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within:
60 days of selling the property if the completion date was on or after 27 October 2021
30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021

Further down the same article, it says by 31st Dec of the year you sold your property.

Report and pay the tax straightaway


You can use the ‘real time’ Capital Gains Tax service immediately if you know what you owe.

You need to report your gain by 31 December in the tax year after you made the gain. For example, if you made a gain in the 2020 to 2021 tax year, you need to report it by 31 December 2021.

You’ll need a Government Gateway user ID and password. If you do not have a user ID, you can create one when you report and pay.

After you’ve reported your gains, HMRC will send you a letter or email giving you a payment reference number and telling you how to pay.

If you need to change your report using the service, you’ll need your report reference number starting with ‘RTT’. You’ll get it by email within 10 days.
Report your gains in a Self Assessment tax return in the following tax year


You can report your gains in a Self Assessment tax return in the tax year after you disposed of assets.

Do not wait until the next tax year to report gains on UK residential property sold since 6 April 2020. You may have to pay interest and a penalty if you do.

If you do not usually send a tax return, register for Self Assessment after the tax year you disposed of your chargeable assets.

Now you say by 31st Jan.

[smileyface]

You're paying CGT. It doesn't matter what job title you give yourself. You do it as part of your self assessment, which you (or your accountant) need to complete each year by 31st January for the previous tax year.

But out of interest, haven't you been closing down your company for the last 6 years?
https://forums.contractoruk.com/gene...ial-relef.html
https://forums.contractoruk.com/gene...wn-ltd-co.html
https://forums.contractoruk.com/acco...wn-ltd-co.html
https://forums.contractoruk.com/gene...wn-ltd-co.html

or selling it in 2020:
https://forums.contractoruk.com/acco...ng-ltd-co.html

Am enquiring for a friend.

[northernladuk]

Am enquiring for a friend.

Why do friends ask other friends who haven't a clue to sort their stuff out? I can never understand this. Why not do it themselves if you are both as clueless as each other?

[WTFH]

Am enquiring for a friend.

Ask your friend to ask his accountant.
If he doesn't have an accountant, then get him to ask your accountant, or to get an accountant himself.

If he's got enough money coming in that he needs to pay capital gains tax, then he can afford enough money to buy professional accountancy advice.

[Whitelime]

Thanks for the responses.

One of the confusing things is when to pay.

I've read it's within 30/60 days of selling the property.

Further down the same article, it says by 31st Dec of the year you sold your property.

Now you say by 31st Jan.

If you can read, it's not that hard....

If you sold property in the UK on or after 6 April 2020

You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within:

• 60 days of selling the property if the completion date was on or after 27 October 2021
• 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021

If you have other capital gains to report

If your gain is not from residential property sold in the UK since 6 April 2020, you have a choice of how and when to report the tax.


Report and pay the tax straightaway (CHOICE 1)

You can use the ‘real time’ Capital Gains Tax service immediately if you know what you owe.

You need to report your gain by 31 December in the tax year after you made the gain.

Report your gains in a Self Assessment tax return in the following tax year (CHOICE 2)

You can report your gains in a Self Assessment tax return in the tax year after you disposed of assets (Deadline for SATR is 31/01).