Hey, 
Improving the tax document is definitely within our plans and weâll let you know as soon as we implement new sections. However, at the time we canât promise anything regarding FIFO.
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Tnx for the update. As I have tried to explain, it would be nice to show that you care for your non-UK customers by including FIFO in some future update. After all, it is a standard feature for most brokers which should not be to hard to implement.
This FIFO option would be helpful. It would make tax calculations easier. What I would like also to see is more information regarding dividends. On last report (year 2020) there was only information about dividend net amount. I would like also to see is dividend gross amount and/or tax being deducted. Keep up the good work.
This was something discussed in early 2020. Didnât get much traction back then.
Missed that topic before. Nevertheless, the more people ask and discuss this problem, it is more likely that we will get this feature update sometime in the future, hopefully.
The current tax documents are useless for FIFO countries and we have to calculate capital gains tax by hand from the history. The worst is that it is not even clear if the tax authorities would consider our calculations as viable proof (if ever needed) without official t212 statement in pdf form backing them.
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its unlikely this will get added to the UK entity, however it will possibly be added to the EU entity once everyone has been moved over to it.
its very rare that you have issues with declarations for the tax documents and as long as your information is all publicly available information you donât explicitly need a document that has done the work for you in many countries.
But what exactly do you mean by publicly available? Who can access this information except t212 and myself?
Hypothetically speaking - how would you proceed if tax authorities asked you for proof of your tax calculations?
The fact that most people wonât be audited is irrelevant - that is just trivializing the problem. Some people will be audited and then they will have problems if t212 does not provide some tangible documents supporting our tax reporting.
You can download a statement of transactions, and the statement has transaction IDs on them.
Couple of presumptionsâŚbut presumably the tax authorities would take that transaction statement at face value. However, in the event that they believe a fraud is taking place, presumably theyâd be able to cross check those transactions with T212.
Also EU vs UK - platform - I donât know what are t212 plans about migration, but there are still EU customers on their UK platform (like myself) - so the FIFO feature should be platform agnostic if ever implementedâŚ
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there are EU customers still on the UK entity yes, but not for long. as these customers WILL be moved to the EU entity, there is no need or incentive to add âFIFOâ to the UK entity when it will not be relevant to UK clients or the UK tax authority, thus a pointless waste of effort. same platform different legal entities suited to different legal requirements and client base. by the time they get around to adding FIFO reporting for EU countries that use this system, there will no longer be EU clients present on the UK entity.
a few countries demand special broker documentation as âproofâ and T212 can provide that on request. if authorities believe fraud is taking place, they wonât value your input to begin with, they will verify with T212 that the transaction details were genuine.
I would provide my personal records and the source of the information which includes the email correspondence with T212.
T212 sends an email containing the contract statement with every buy/sell of a position during the day, this comes with transaction ID, prices, share counts, exchange rates and the time of transaction. you can make your own PDF from this information if necessary or just compile and forward them, but T212 will very likely provide you an annual statement should you request one to support your calculations. T212 is already committed to providing what they are required, any further problems are not theirs but your own. If the tax authority in my country questioned my profits, I just have to show them how I calculated it from my records and sources and they will correct me where I have erred.
when I say publicly available, all information about a stock is public and can be researched and referenced without ever needing to approach T212. Transactions that occurred OTC and thus within T212âs community still possess transaction IDs and can be made known to the tax authorities should they request it, because T212 will not withhold data from the relevant tax authority.
public information includes things like dividends (dates, amounts, type etc), stock splits, transactions through the exchange et cetera and do not need any âproofâ from T212 that they occurred because it can easily be verified with a quick search. as nice as a PDF may look to you, it is often no more âproofâ than the publicly available information or any records you have kept yourself. because T212 records things like FX rate at the time of the transaction and your government may decide that the exchange rate needs to be determined differently and that is something you should already be aware of when filling your taxes and calculating for yourself.
ultimately, for almost everyone, the authorities and courts will take you at your word when you submit information unless they have been given reason to doubt you, itâs faster, cheaper and easier for them to do such if you have the conviction to go to court to defend your case.
if you are involved with stocks, the authorities expect you to be able to do the math to judge your gains and losses and report any taxable amounts with honesty. âmostâ requests for additional documentation are not because they are ânecessaryâ but rather because its âeasierâ and less work for people if they make T212 responsible for their calculations. no document T212 offers will ever truly be enough because you could have another account with a different platform/broker and you would still have to do the calculations yourself.
I am not trivialising the âonly a few will be auditedâ I am stating objective fact. If you donât know what to provide to prove your numbers, ask your tax authority and they will tell you, but T212 already gives you enough information about all of your transactions on a frequent basis via email that can support your tax reporting, itâs your duty to make sure your records are correct and that you can provide the source of those details when requested.
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If I take capital gains as an example in the UK alone, no matter what document Trading212 makes to tell HMRC what my capital gains should be for the stocks I have owned/traded, this report would be completely ignorant of any other accounts I hold or any other type of Capital gains that were not amassed as a result of my action in that stock account, so the average, FIFO or LIFO etc calculation would be completely unreliable.
the capital gains from the stock market are just 1 in a list of Capital Gains Tax sources that must be reported and filed. this includes disposing of:
possessions worth more than ÂŁ6000 (that isnât your car)
property that is not your main home
your main home if you let it out, used it for business, or itâs a very large estate
shares not held inside an ISA or PEP
business assets.
there are exceptions that you donât need to pay CGT and then others that you may need to determine on an individual basis.
in regards to records the HMRC has a passage provided stating:
If you do not have records
You must try to recreate your records if you cannot replace them after theyâve been lost, stolen or destroyed.
If you fill in your tax return using recreated records, youâll need to show where figures are:
- estimated - that you want HMRC to accept as final
- provisional - that youâll update later with the actual figures
for records we do have, businesses need to hold them for 5 years, while everyone else only needs to retain them for 1 year or longer if late filing.
Each country in the EU will have its own provisions regarding records, declarations and calculations. you canât possible expect a broker/platform to manage that for everyone.
Thank you for the extensive explanation. I really do not know what process the authorities do during an audit.
Also, I have no idea about t212 migration plans for nonUk customers, didnât get any notification about it, so ok, if they plan to move me to the EU platform and provide FIFO statements, fine by me 
All that you said taken into account, we still have the fact that UK customers get their yearly tax calculated nicely by t212, while EU FIFO customers have to do it by hand which is non-trivial if you have hunders of transactions.
I am hopeful that the FIFO feature will be added at least to the EU platform.
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We do? I purposely try to maximise the sell of losses against gains to avoid having to complete a self assessment, but my understanding is that 212 is a broker that does not provide tax reporting services. We dont pay for it.
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Indeed you do - everyone can ask for a yearly statement from t212 where all the gains and losses for the past year are calculated by t212 by the weighed average method and you get a nice pdf file. It even includes dividends and witholding tax
Of course, if you need FIFO this calculation is almost useless 
If you only use t212, this should be all you need for your taxes. Even if you use multiple brokers it is useful for calculating all your capital gains/loses.
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Hey,
Iâve made a tool for calculating your capital gains from Trading212 automatically with the First In First Out method. You only need to provide your exported trading history, the data will stay on your local computer. Itâs easy to use and has a simple user interface.
You can check it out and get a detailed guide about the usage here. Iâll be happy, if you check it out, and I will be even happier, if you provide feedback.
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