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3rd March – Patreon Voice Call 9 PM GMT (LI, Gulnaz and Ifteqar) This is not professional advice. Our objective here is to share our collective knowledge for us to take it further to financial advisors if needed

• We touched upon the budget announcement : There are no changes to ISA limits or CG tax

• There are two elements to our CG gains tax o If you are in ISA – there aren’t any capital gains tax due, you don’t have to declare o On invest accounts and if you are buying OTC stocks, depending on how much profit one makes, you might be liable for CG tax – the allowance for the current year is 12,300 GBP, anything above that is taxed at either 10% or 20% depending on the profit amount

• A popular query is “once we have sold a share and as long as we don’t withdraw the profit into our bank accounts is CG tax still due?” – This is not right, CG tax are due as soon as you have sold your shares

• It’s advisable to keep a record of any sale at loss – If you have not completed your tax returns, at the end of this financial year, contact HMRC advising them about the loss in the current tax year and you can carry it forward to the following year and offset the loss against the profit in the following year

This is not professional advice. Our objective here is to share our collective knowledge for us to take it further to financial advisors if needed

• We touched upon the budget announcement : There are no changes to ISA limits or CG tax

• There are two elements to our CG gains tax o If you are in ISA – there aren’t any capital gains tax due, you don’t have to declare o On invest accounts and if you are buying OTC stocks, depending on how much profit one makes, you might be liable for CG tax – the allowance for the current year is 12,300 GBP, anything above that is taxed at either 10% or 20% depending on the profit amount

• A popular query is “once we have sold a share and as long as we don’t withdraw the profit into our bank accounts is CG tax still due?” – This is not right, CG tax are due as soon as you have sold your shares

• It’s advisable to keep a record of any sale at loss – If you have not completed your tax returns, at the end of this financial year, contact HMRC advising them about the loss in the current tax year and you can carry it forward to the following year and offset the loss against the profit in the following year

Q&A

• Do we have to let the HMRC know about the profits I make on my ISA account? o you don’t have to report profits made out of ISA

• If I have already earned 12,300 on self-employment, do I get tax relief of 12,300 on my CG as well? o It’s completely different – on your self-employment you have a tax free personal allowance on your income of about 12,500 GBP. The additional allowance on your CG is 12,300 GBP

• ISA allowance: Over all ISA allowance (cash, Stocks and Shares, Innovative finance and Lifetime) per financial year is 20,000 GBP

• Opening ISAs: You can open a new ISA every financial year with a new broker or a new bank or you can remain with the same bank or building society and add another 20,000 GBP to the existing ones

• Do we have to list out all trades on our self-assessment form or just the net figure? o It’s just the net figure, but do keep records ( 6 years), you can also send the list of trades (T212 lets you export into an excel and share)

• Current tax year ends 5th of April 2021 – if your profit is less than 12,300 GBP then you don’t have to do complete tax returns

• Employed and also self-employed: if you earn profits of less than 12,300 do I have to declare on self-assessment? o Yes, because you are already registered for self-assessment, hence you need to provide all of your income from every source even if its from shares and is below 12,300 ( It’s a different rule for people who aren’t registered for self-assessment and their profit is below 12,300 then they don’t have to declare)

• Self-employed and did not make profit and didn’t declare last year o amend tax return to carry losses to offset against future profit , perhaps change accountant

• Invest account as a joint account in IBKR – Does that double your CG allowance ? o We need to look into this further! FYI – you can elect who gets how much profit and it has to be done 7 weeks before the end of tax year and let HMRC know as to how you wish to split the profit o Caution – HMRC will audit to see income trail

• Sell and rebuy to exhaust your CG tax? o Yes , but beware of share price fluctuation – your potential tax strategy should not offset your gains o Bring down over all gain – consider selling stocks in red and buy back

HMRC related discussion

• All trading platforms report to HMRC detailed info on us (council tax, property, bank accounts, who is living at our house , our business partners, cars, mortgage etc.) and on all the trades we make – this is a legal obligation

• Reporting losses to HMRC for 2019/2020 – it’s a bit late, suggest writing to let them know, send evidence /amend tax returns through accountant

• Reporting profits to HMRC – if there is an oversight, there is penalty : HMRC looks back for up to 4 years and potentially up to 20 years if needed

• HMRC has dedicated telephone assistants/helpline to complete your tax returns

• The deadline to register for self-assessment is 5th OCT 2021 – failing which you will receive a penalty

• Caution – Today’s budget announcement includes increase in funding info at HMRC aimed at tax avoidance and tax evasion!

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Dear newbies,

I would like to interact with you more. I think this is the time for that.