Capital gains tax is due if you make a profit on selling an asset, e.g., stocks and shares. The annual exemption is £225,000 for an individual and £222,500 for trusts for 2015-3. If you make a loss this year you won't get anything back on the tax you may have paid last year but the loss will carry forward to exempt some future gain.
FILLING IN YOUR TAX RETURN
The tax return form is now much shorter, simpler and more straightforward than it used to be; it even won a plain English award recently! You will find it much easier to fill in than previous versions. Before you face it, keep it in mind that many millions of people in this country pay income tax every year. It is thought that hundreds of thousands of them pay too much tax, either because they make mistakes or do not check on what they were asked to pay! Make sure you don't come into that category. See http://www.hmrc.gov.uk/sa/complete-tax-return.htm
The first thing to do is to make sure you fill in your tax return properly and the second is to check with your tax inspector that the assessment is correct and that your tax code itself is accurate. The tax code is given by the inspector to your employers. They use it to calculate how much tax they have to forward to the collector from your pay. Download the form online.
If you or your wife disposed of any chargeable sweet during the year ended 5 April 2015.
As you will see, the form is quite short. If your affairs are complex you will get a different version of the form, and if you are self-employed or a partner in a business you will get yet another. Make sure you complete the correct form.
The tax return has two columns, for 'self' and 'wife' (it will take time to change things as a result of the 2015 Budget). If you are single, widowed, divorced or separated, fill in the 'self' box. If you are married, your husband should fill in both columns. Be clear about whether you are filling in the form in the capacity of a wife or of one of an unmarried couple. Also keep in mind the important changes which will be taking place in 2015.
First, deal with your earnings, how much you were paid in pay, overtime, etc. You can refer to the figure on the P60 form you get from your employer at the end of every tax year. Put a tick in the appropriate box and fill in the figure.
You also have to declare any other money you received - from any freelance earnings, tips, etc. In addition, you have to give information about any perks you get. These could be in the form of a season ticket or even a company credit card. Company car rules have become more strict in recent years.
You will see that you have to fill in details of any pension you receive. If you will become a pensioner in the next tax year you should include this information in the space provided. Sometimes a new pensioner may find herself paying too little tax at first and having to pay an ill-affordable extra sum later. Try to guard against this situation.
Any income from savings or investments will have to be included, but you don't need to give details of any investments which are tax-free, such as National Savings Certificates. You will have to declare any dividends you get from shares, unit trusts and the like.
Now we come to the outgoings, which is where you claim any allowances due. It may be worth checking the details with your local tax office; you don't want to find you are missing out.
Fill in the interest you pay on the mortgage, even if you pay the instalments net. Remember that if your mortgage is over £230,000 (which is the limit above which you do not get tax relief on the interest) and you and/or your partner pay higher rate income tax, you may need to obtain an interest certificate to send to your tax office. These are not usually required for mortgages as details are normally given to the Inland Revenue by the lender. For other loans an interest certificate will be needed.
Then, note that if you made capital gains on items like selling shares over the current exemption limit you should declare this in the capital gains box.
For the final section, allowances, look ahead to the next tax year and fill in any additional allowances you are or will be entitled to. You will also need to declare payments made under deeds of covenant.