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.

[Mistigri]

To put this in perspective, in order to incur CGT you need to realise gains of 11k a year, which suggests that the OP has assets - not including the family home - that are well into six figures.

If this investment was a risky one then it is reasonable to assume that it involved only a small proportion of her assets.

I'd reiterate what others are saying: we are not talking about the average family here, but someone who may well have assets in the high six figure (or low seven figure) range. Most people do not pay CGT because you have to be rich or careless (or both) to become liable for it.

[Klayden]

You lead a very eventful life.

[howabout]

Trying to square the circle in my head on why so many think BTL is such a great investment in that it is one of the most likely investments to lead to a CGT liability?

[Cherryblossomsinspring]

OP congrats on the investment win. I'd just try to enjoy that and accept that you have some tax to pay on it.

[BabyMurloc]

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

This most peoples money is double taxed in some way or another.

[daisychain01]

The gripe is the lack of transparency in what taxes are paid for

Welcome to democracy OP, it's pointless griping about not having a direct say in how taxes are allocated, that's not how the system works.

As others have said, the tax on your investment risk is on the profit, the government doesn't target the 'principle' - you'll still get some profit presumably, and isn't that better than nothing?

What do they say .... Speculate to accumulate?

[Iggly]

You can find out what taxes are paid for easily enough. Look at government accounts!

[longtimelurker101]

Just as a thought... are you relying on the rule of law and the policing of it to protect your gains made from investments? If so then yes you should pay tax.

It is rather silly to say: " I took the risk, with my money", yes you did, but the society you live in facilitated your ability to do so. You must contribute back into it.

End of discussion

[Nettletheelf]

I'm a keen investor, but I wouldn't dream of complaining about paying tax on those investments. C'est la vie. If you're lucky with your choices, and your investments aren't in a tax efficient wrapper like an ISA or a SIPP, you have to pay tax on your dividends or gains. Just as you would pay tax on other income. I pay tax on my dividends in my ordinary share dealing account. Why shouldn't I?

Your original 'stake' is taxed income, but the profits you make aren't. You're not being double taxed on the same money.

I don't think that IHT is 'iniquitous', by the way. Without it and its predecessors, most of the wealth would still be in the hands of the old aristocracy. I remember when blessed Lady Di died, the Mail was full of outrage that her estate should have to pay IHT "because that's not what she would have wanted". Tough. Richer people need to be made to share with poorer people. It's called civilisation.

I work in finance, and it's surprising how many people justify their own selfishness and greed (e.g. participating in egregious tax 'avoidance' schemes, a la Take That) by bleating that Google, Amazon, Starbucks etc. are much naughtier than them.