Hi everyone! I know there are similar post on the forum but I can’t really find an answer tailored to me. So if is there anyone that lives in the UK and had to deal with gains tax that can help would be greatly appreciated. (I am a full time employee)
I started trading in April of 2020 because like everybody I notisced that the market was crashing and I wanted to be a part of the recovery. So I opened a Trading 212 account and I started to invest in companies that were hit very hard like travel and solid SPY stocks that were at a discount. By september I enjoyed a nice 8000£ gain. After that I got lured by the EV and SPAC plays so I started to take profits from those recoveri stocks and invers into more speculative plays untill today and made another 9500£.I also along the way invested a part of the money using Trading 212 Inverst and a part into Trading 212 ISA. In december I starte also investing in FX and CFD using Oanda, where today I am at -5000£ (I did a very risky CFD play and I doubled down instead of pulling out, oh well lession learned). I also accumulated around 4500£ of precious metals and invested 5000£ into crypto. So yeah I have my hands in everything. Now April is comming and I started to think about taxes and how the hell I am agoing to approach it because back when I started I never dreamed that I would actually make any money out of it.
So, I called HMRC and tried to get some answers, they told me I need to register for self assesment but that’s it. Other than that I got some vague answers that didn’t really made sense to me. So I turn to you guys for help. Should I attempt to file taxes myself or reach out to a professional? If I need to reach out does anyone have any recomandations? (sorry for my terrible english and thank you in advance)
I see. Do you use a CPA? Also I am assuming you can’t use loses from SB aginst the gains from stocks? Like try and deduct some of those stock gains using the amount I lost using SB. Because I am aware that you have a certaing amount allowed per year that is safe from Tax like 12.500£? I just neet to know how to approach this because I don’t want to owe tax and not be aware of it.
I don’t use a CPA as I don’t even have to keep a record of trades, profits or losses.
Correct, SB losses cannot be used to off-set other types of gains or income. There is no threshold in SB above which you start to pay tax, there is just no tax.
Correct but I don’t have the actual figure - I think yours is probably right though.
Again correct - but it is tax-free because most people lose money and it DOES become taxable - if you get profiable regularly and the tax man fiinds out !
I am not a tax advisor - but it seems like your 5,000 loss Would be ok to offset against your gains ! (Oanda is NOT Spreadbetting)
Your ISA is fine and you should perhaps fill that up and start another in April - and trade your stocks through them ?
AS I said I am NOT a tax advisor and you will probably find the “self assessment” forms a nightmare ! - keep away from them if you can !
