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

[pettywitchinlondon]

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.

Multiple X-posts on the VAT issue!

Don't you only pay CGT if you sell your investments? If it's good dividends/interest, that's income tax?
Don't sell your shares all at once, to keep the gain within the tax free allowance

Not if I spent all my money on biscuits I wouldnt be taxed at all

The biscuits would still be better for the economy though, unless your risk was supporting a small business that now employs loads of people, but it wasn't was it?

You haven't been taxed double though. You will have only been taxed on the gain, not on the original investment. And the first £11,000 of that gain is exempt.

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

Thanks, however for people of my funds its difficult to avoid it. Unless I just get a sham marriage or something easy like that. Its annoying being punished for being single.

You're paying tax on the profit you made, not on "the money I've already paid tax on".

However, you would only not pay VAT on the biscuits if they were not "covered or partly covered in chocolate or other products similar in taste and appearance"! Chocolate digestives are a no but Maryland cookies are ok.

For the love of mercy - is that it for today's personal tragedy with you or is there more to come? Just so I know, you know............

For what it's worth, YANBU, I think capital gains tax and inheritance tax are both unfair and iniquitous

That's so strange. Why do you object most to the taxes on money that take the least effort to get?

Ah but if you were married you'd have to share the profit....

You only pay CGT if you sell it. Keep your assets, or sell just enough to say within the CGT allowance limits.

Why did you not look into investing via a tax efficient scheme?

I'm sitting on some large capital gains which I can't realise because there is no CGT relief at all where I live. I either have to leave my money where it is, or pay the tax. (Ironically I would have no CGT liability in the UK as the assets are in PEPs - but i no longer live in the UK, I made my choices and I have to live with them. There is nothing unfair about this!).

Hardly as most biscuits are made by multinationals that limit their tax and almost all factory's have been moved abroad these days.

And I'd then require NHS treatment for my obesity and diabetes.

OP, if you were married your other half would have a claim on half of ALL of your money! The married allowances are not that great.

I get you're feeling miffed, few of us like paying taxes when it comes to it, even if we enthusiastically support things like schools, hospitals, pensions etc. It doesn't feel fair to most people. What about the person who works really hard on a work project for months, putting in long hours, weekends etc and gets a well deserved bonus, only to find 40% of it immediately goes off to the taxman? That's no more 'fair' than your situation, but that's the way it is. It's not 'fair' that people have lifelong disabling conditions that mean they can't participate in life or work for their own subsistence. We need as a society to look after the vulnerable. That means those who can afford it sharing a minor proportion of their good fortune/ proceeds of their hard work.

So yes, while I feel your pain, YABU!

What about bourbons? They are vat free right? Party rings?

As you have an £11,000 personal allowance for capital gains then you have made at least £11,000 profit on your investment. For every additional pound in profit you make, you get 72p of that. So if it is a "large tax bill" I'm guessing maybe £1,000 or so? That would be an additional approximately £3,500 with £1,000 tax so your profit would be £12,500. So still quite a sizeable amount really. And if it is a larger tax bill then your profit would be greater.

YABU - be pleased that you made a profit to be taxed on. Also, you are only been taxed on profit aren't you, not the actually money you put in? If that's the case you can't really say you have been double taxed can you.

I do think it's unfair that big businesses find loop holes to avoid tax but I don't think it means you shouldn't pay tax on this.

That means those who can afford it sharing a minor proportion of their good fortune/ proceeds of their hard work.

For what its worth I agree with most of your post. The gripe is the lack of transparency in what taxes are paid for. If they all went to schools and hospitals that would be fine. If they go towards Tony Blair's multi million pound security fund that is not fine.

Everyone has to pay tax, and thus surely when investing you take this into account as to what your returns will be? You get the first £11,000 tax free, so I can't see many people feeling too sorry for you. FYI dh and I took a massive risk a number of years ago, but it is finally coming good, but we've always known (and accepted) that there will be a large tax bill to pay.

Bah. YABU.
I worked very hard for 37 years and have just been made redundant. Now I get £73.10 a week (for 6 months only) and that's taxable. Much more unfair.

That's so strange. Why do you object most to the taxes on money that take the least effort to get?

Because in effect you are then taxed three times on the money (or rather the money is taxed three times) - once when you earn it, then its hit by IHT, then you pay expenditure taxes when you spend it

The other issue with IHT is that you can have the situation say where a parent dies prematurely where there are insufficient liquid assets to enable dependents to stay in the family home

In the case of CGT, it seems unfair because it doesn't take into account the skill and effort required to make an asset appreciate in value - whether that's the selection of the asset in the case of a financial one or the ongoing maintenance etc in the case of a physical one, I feel it is unfair that the government takes a share of my success.

Having said that, I recognise that the government needs to raise tax revenues from somewhere. I would like them to spend what they have more efficiently though!!

You are funny. You don't know much about investments do you? Maybe you should quit whilst you're ahead. If you can't factor in your cost of capital you're not doing so well

Lol I could say my income tax is the government taking a slice of my successful career. Such is life.

I agree, OP, about govts wasting money or spending it on stuff we don't approve of. But they all do that, and in fairness they couldn't possibly please all of us all of the time. It sucks! What gets me more is the super wealthy dodging taxes when us mere mortals pay our full whack! But anyway....

Well done on making a profit from your investment. Not easy in today's financial climate. I would congratulate yourself on that.