When do you need to complete a self-assessment form?
My parent gifted me £25,000 when they got their retirement lump sum. Sadly they died 18 months later. Shortly before passing they gave me an additional £50,000. I made a profit of £20,000 from the sale of a house I flipped (with my own money) and I've settled the capital gains tax on this. I used all this money to live off for the past year. I've not been working or getting benefits etc. Should I have completed a self-assessment?
Arthur Weller replies:
Answer: Firstly, if you flipped the sale of the house it seems to me that the tax you should have paid then was income tax, and not capital gains tax. Secondly, if you paid tax when you sold the house, presumably you informed HMRC about the sale of the house. Thirdly, if you have used the money from the sale of the house to live off, and have not been working (so you have not had any income) you don't need to complete a self-assessment return for the past year, unless HMRC ask you to do so.