The lowest gold price about 5 years ago was £1097.51 (Dec 2019), price today £1930.17, an increase of 75.86% or £832.66 per ounce.
Let us assume 5 years ago all Tally customers combined had £1,000,000 on deposit and that didn’t change for 5 years. That’s a gain of approx. £758,600.00 spread over all the depositors respectively.
Assuming they all had to pay the full capital gains tax of 20% this would be £151,720.00 owed to the taxman.
Do we think the taxman wouldn’t be interested in collecting, or at least investigating all tally customers for a potential £151,720.00 for every £1 million held in tally during this period?
Bearing in mind that no tally customer who has made a handful of transactions in and out of their account, or tally the company, have a clue what CGT may or may not be due over any period of time since the beginning of this account, how much time, effort, cost, and stress this would cause every single customer and Tally as a company, WHEN HMRC decide to go down this route?
Just something I think about as I was investigated a few decades ago so I know what it’s like, and their claws dig deeper these days. You think store loyalty cards, points cards, nectar etc. are for your benefit? Nope! Every single, tiny little transaction will be seen and you’ll have to be able to justify it based on your declared income and lifestyle etc. It could end up costing you far more than just the unpaid CGT on your tally (plus late payment interest of course, and hopefully not a fine).
Clearly not something Tally is concerned about…. That is a concern!
Hi I thought that CGT is only applicable on a profit made when you sell all of your tally holding, if you use it as a savings account as I do the only CGT that should be payable is when you spend your tally and that is quite complicated to work out as the allowance was £6000 per annum up to 2023 and £3000 from 2024 so basically you need to make a profit on the difference between the gold price that you bought it at and the price you sold it at which fluctuates all the time so if the tally gold price was say £5.50 and you spent at £6.10 i.e a profit of £0.60 then you would have to spend more than £5000 before you are liable for any CGT so far in the 4 years I have held an account my savings have increased by £8000 i.e. £2000 per yearso below CGT allowance. It needs a very clever algorithm to work it out.
Tally should assume all account holders have used up all their CGT elsewhere, they don’t need to know anything else.
They have built a product that opens their customers up to paying CGT on any increase in the gold price. They have all the information, ie how much has been deposited and on what date at what price of gold, they know all the percentage daily fluctuations up and down of gold and they know how much and when gold was sold and at what price.
They have all the figures they need to be able to allow each customer to select a start and finish date and show any gains or losses between those two dates.
It they can’t be bothered, or don’t know how to create this function they should employ someone that can do basic maths. Failing that they should state on their home screen and before signing up, “Tally does not and will not keep a tally of the capital gains tax you could be legally liable for when using this account. You use this account at your own risk”.