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AIBU?

pissed at paying cgt when I took a risk to invest my money

134 replies

pettywitchinlondon · 08/06/2015 11:20

I've got quite a large tax bill to come as some of my investments have done very well. I don't mind paying tax usually, but I'm a bit pissed at this as I had to take a huge risk with money I've already paid tax on and if I lost it all the government wouldn't bail me out.

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samG76 · 08/06/2015 11:23

sorry, that's a stealth boast and YABVU. Along with any spouse or partner you can have £22K tax free in any year, and you wouldn't have paid any tax in an ISA. Why should unearned gains not be taxed when earned income is?

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InMySpareTime · 08/06/2015 11:25

It's hard to feel that sorry for your loss, as to get the large tax bill you must have made substantial capital gains. You're still keeping over half the gain, and the CGT allowance is generous.
You took a risk, it paid off.
If you were really on your uppers, the government would bail you out, via the benefits system. The same system you pay into when you make enough money.

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pettywitchinlondon · 08/06/2015 11:26

Its hardly a stealth boast, I save my money and am frugal. I'm not married so I don't get anywhere near that!

Taking a job doest risk all your capital.

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InstitutionCode · 08/06/2015 11:26

That's not exactly true, because if you do make losses, they can be offset against future year's GCT liability and what samG said.

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SecretNutellaFix · 08/06/2015 11:26

You knew before you invested it that if it made a profit you would need to pay tax on it, so why are you whinging about it now?

It's absolutely fair- a little bit of your good fortune goes towards helping others who need services such as roads, emergency services, education, healthcare, council services.

I would hope that if I was fortunate enough to have enough money to invest which did well for me, that I would be glad to pay to keep these services running, mainly because I use them myself.

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treaclesoda · 08/06/2015 11:27

I know it is annoying to get a bill, of any variety, but I don't really follow the logic tbh. It is a bit like someone setting up a business which becomes a success and then saying that it isn't fair that they have to pay tax on their earnings, because they took a risk going self employed and if the business had failed the government wouldn't have bailed them out.

Well done on your investment though, cgt or not you must be relieved that your risk paid off.

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littlemslazybones · 08/06/2015 11:28

Some of your money made more money, you haven't been grafting down t'pit. Don't be a drama queen. YABU

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SqueezyCheeseWeasel · 08/06/2015 11:28

CGT isn't exactly a secret. It is a responsibility that comes with the reward.

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pettywitchinlondon · 08/06/2015 11:30

Its hardly a little bit, its 28%.

Yes I know Ib a bit u. But if I had made massive amounts I would be able to employ someone to pay virtually nothing.

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TwinkieTwinkle · 08/06/2015 11:30

If you don't like it then don't invest! You knew this would happen so I fail to have any sympathy.

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TwinkieTwinkle · 08/06/2015 11:31

No, you're not being a bit unreasonable, you are being massively unreasonable. You can do something, knowing what part of the outcome will be and then proceed to whine about the known outcome!

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howabout · 08/06/2015 11:32

YABU
You were smart enough to take a risk which paid off handsomely but not smart enough to manage your CGT liability effectively. More planning, less gambling required next time.

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pettywitchinlondon · 08/06/2015 11:32

Can't anyone else see it is a bit unfair? If I'd have just spent my taxed money on buying crap and not investing then it would have helped the economy less and I wouldn't have been double taxed

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Icimoi · 08/06/2015 11:33

This is massively illogical. I invest lots of hard work in my job. Does that make it unfair that I am taxed on what I earn?

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treaclesoda · 08/06/2015 11:34

But if you just bought stuff you would have been double taxed.

You would have paid income tax on your earnings and then paid VAT on whatever you bought. Double taxing happens all the time, to everyone, rich and poor. If you put fuel in your car you pay fuel duty and then you pay VAT on top of that...or is it the other way round? In any case, you pay tax on top of tax

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Flossyfloof · 08/06/2015 11:34

I would be pissed off as well. it is hard to be sanguine sometimes, especially when people think that married persons' tax applies to everyone. As a single person you do miss out, I think, except for the 25% council tax reduction.

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samG76 · 08/06/2015 11:35

OP - if you want to take a risk, you can always reinvest in an EIS. Then you defer your CGT as well as getting an income tax break. Even if you don't I really can't see that you're too hard done by, as you're unlikely to be paying more than 20% tax, with no NICs.

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sparkysparkysparky · 08/06/2015 11:35

I work so hard and even got a pay rise this year. Paying tax is so unfair Grin ... Manage your affairs better and get over yourself having to pay taxes that are due.

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howabout · 08/06/2015 11:35

If you had spent it in a shop you would have paid VAT with no tax free allowance.

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InstitutionCode · 08/06/2015 11:36

"If I'd have just spent my taxed money on buying crap and not investing then it would have helped the economy less and I wouldn't have been double taxed"

People spending money on crap is essential to the well being of the economy. Saving or investing in material assets (rather than businesses) is the very worst thing you can do with your money as far as the economy is concerned.

And of course you would have paid tax, 20% of everything you spent on non-essentials would have been VAT

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pettywitchinlondon · 08/06/2015 11:36

I would be pissed off as well. it is hard to be sanguine sometimes, especially when people think that married persons' tax applies to everyone. As a single person you do miss out, I think, except for the 25% council tax reduction.

Thanks that's exactly it! If I had of been married I wouldn't have to pay a penny in tax. It does really piss me off!

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SqueezyCheeseWeasel · 08/06/2015 11:37

It's a pain in the arse to kiss goodbye to chunks of money (I have paid it too) but the reality is that it was never yours in the first place. You were always going to have pay tax on any profits and if you were unwilling or so unhappy to do so then you shouldn't have invested in the first place and should perhaps have spent your money on gin and haribo instead. Which is also 'double taxed' btw (VAT).

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bustraintram · 08/06/2015 11:37

For what it's worth, YANBU, I think capital gains tax and inheritance tax are both unfair and iniquitous. But, as you say there are steps that can be taken to minimise the liability (at a cost which should be factored in to your investment appraisal). Also, had you spent the money on tat, it is likely you would have been double taxed on it because you would have paid VAT

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DoJo · 08/06/2015 11:37

Can't anyone else see it is a bit unfair? If I'd have just spent my taxed money on buying crap and not investing then it would have helped the economy less and I wouldn't have been double taxed

a) consumers pretty much ARE the economy, probably more than small-scale investors depending on what you buy and where you invest

b) Does paying VAT not count as double taxation in your mind?

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SqueezyCheeseWeasel · 08/06/2015 11:38

Ah x post with 'institution' and great point about buying crap supporting the economy too.

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