I started filling out my tax return today and the time has come to report the capital distributions from my MVL.
After years of using FreeAgent to do my tax return I'm back to using the HMRC software. The CGT section seems mostly straightforward, I just have a question regarding multiple distributions for those who have already done this.
My MVL (I used MVLOnline) was paid initially as a director's loan after the initial paperwork was completed, which was cleared by an interim and final distribution after all the clearances were dealt with, both within the 2021-22 tax year.
Do I need to enter these as two separate distributions (and therefore use two separate worksheets) when completing my tax return? My gut feeling is that it doesn't make any difference as they were all in the same tax year, but on the other hand as I do have two bits of paperwork showing two separate distributions made in June 21 and January 22 respectively I should record them that way.
The company share capital was £100 and I owned 75% of the shares. The worksheet asks you to round to the nearest whole number so I have entered:
* The distribution amount from the MVL paperwork and £37 as cost on sheet one.
* The distribution amount from the MVL paperwork and £38 as cost on sheet two.
The distributions were not a precise 50/50 split, but I've split the cost between the two rather than over-complicating it. This gives me the correct total distribution and £75 base cost, leaving the correct taxable amount and CGT after claiming BADR.
On both sheets I have entered the same description: "75 ordinary shares - interim distribution".
Once I've got this figured out then I can do the same on my wife's tax return for the other 25%.
After years of using FreeAgent to do my tax return I'm back to using the HMRC software. The CGT section seems mostly straightforward, I just have a question regarding multiple distributions for those who have already done this.
My MVL (I used MVLOnline) was paid initially as a director's loan after the initial paperwork was completed, which was cleared by an interim and final distribution after all the clearances were dealt with, both within the 2021-22 tax year.
Do I need to enter these as two separate distributions (and therefore use two separate worksheets) when completing my tax return? My gut feeling is that it doesn't make any difference as they were all in the same tax year, but on the other hand as I do have two bits of paperwork showing two separate distributions made in June 21 and January 22 respectively I should record them that way.
The company share capital was £100 and I owned 75% of the shares. The worksheet asks you to round to the nearest whole number so I have entered:
* The distribution amount from the MVL paperwork and £37 as cost on sheet one.
* The distribution amount from the MVL paperwork and £38 as cost on sheet two.
The distributions were not a precise 50/50 split, but I've split the cost between the two rather than over-complicating it. This gives me the correct total distribution and £75 base cost, leaving the correct taxable amount and CGT after claiming BADR.
On both sheets I have entered the same description: "75 ordinary shares - interim distribution".
Once I've got this figured out then I can do the same on my wife's tax return for the other 25%.
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