Short answer
If you realise a capital gain that exceeds the annual exempt amount, you must inform HMRC. Shares sold inside ISAs or specific employee schemes are exempt from reporting.
Key points
- Report gains over the £3,000 allowance
- ISAs and certain schemes are exempt
- Keep accurate records of all transactions
- Use Self‑Assessment or the real‑time service
- Failing to report can trigger penalties
If you sell shares and the profit exceeds the annual exempt amount, you have to tell HMRC. Shares sold inside ISAs or some employee schemes do not need reporting.
When you must report
Capital gains arise when the selling price is higher than the purchase price. If the net gain is more than the £3,000 annual allowance, the gain must appear on your Self‑Assessment tax return or be reported through HMRC’s real‑time Capital Gains Tax service within 60 days of the sale.
Exempt sales
Shares held in an ISA, a SIPP, or a SAYE plan are exempt from Capital Gains Tax, so no reporting is required. If you hold shares in a standard brokerage account, you must report any gain that pushes you over the allowance.
Frequently asked questions
What if my gain is below the £3,000 allowance?
You do not need to report it, but keep records in case your circumstances change next year.
Can I report a sale after the 60‑day window?
You can still report it, but you may be subject to interest and penalties for late submission.
Do I need to pay tax on a loss?
Capital losses can offset gains in the same tax year or carried forward, but you must report the loss to claim the relief.
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