How to calculate UK Tax on your General Investment for a more active trading

I am not affiliated with this guy. Just find his video when browsing and notice it is very useful and clear. This guy is really doing a great Job in explaining Tax on General Investment (non ISA) with real number and work out example.

I just wonder What about the people who trade multiple times say a few thousands in a year making having gain and loss in more than 100 different stocks using the same money? I doubt anyone will be able to trace it. I also doubt any trader will ever do like what is described in the video. The amount of time that you need to spend comparing to the gain you have made does not make it worthy.

Could you not just see what you originally have in the account on the start of the tax year and see how much you gain by the end of the tax, given no money is added deduct the two and that is your gain in a particular tax year ??

Most people have their account under ISA and only use general invest for the stocks are not available under ISA account such as many chinese stocks, penny stocks, etc… So the amount of gain under invest account will be far less than £12,300 a year. Do you still need to calcaulate that when it is is very obvious your gain is much lower the the threshold ??

As far as I’m aware in the UK, you pay capital gains on the any gains you realise in the tax year. The History screen in the 212 app details your Total Return. Thats is probably a close approximation. It contains the Result on sales.

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Could the loss be offsetted from the gain you have made in the same tax years. If it is the case than it will be the same by just looking into the amount of money on the end of tax years start deducted with the money at the start of tax years and that is your gain. This could easily be seen from the T212 apps.

T212 send you an excel spreadsheet via emails for any single trade that we have done. But supposed there are thousands of tradings. It is a very time consuming to put them altogether and make it not worthy to trade given that you just end up with the one you already know from the beginning e.g it will not be exceeding £12.300.

You need to look at this:

It is not as simple as looking at the cash balance you have at the start/end of each year.

You can download your trade history from 212 to CSV format that makes it easier to work out.

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Not easy if you might have 5-10 of them in a day and involve thousand of transactions in a taxyear.
I would like to know how the people who are actively trading making more than a few thousands buy/sell in a year tracing this gain/loss.

Also I am still not clear could the loss be used to offset the gain during the same taxyear ??

It is all on their website.

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just keep a spreadsheet with buy price, sell price, gain or loss for each trade. that’s it. then add them all up at the end of the year. doesn’t matter if there is thousands a spreadsheet has a lot of rows, seems simple enough to me. regarding the loss sure it can just go against the same years gain. it says on HMRC site under losses and I claimed a loss once to help offset gain.

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as an aside, when to actually report a loss could be quite important as you have 4 years in which you can claim it.

eg: this year profit 10k from trading outside of ISA, with -5k loss. if you report the loss this year it is a waste of time as you are under threshold anyway, so you keep it in your back pocket so to speak and don’t report it to HMRC. 3 years later you make gains of 15k, you then use the -5k loss and report it so you stay under the threshold and pay no tax.

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Thanks but what about other traders using a different p’form where they do not get the CSV file ?? How do they track gain/loss for more than a few thousands trasactions a year ??

you have to keep records manually, doesn’t matter how many trades. A good example is crypto trading, exchanges rarely give any UK tax statement. Anytime you say buy dogecoin with BTC it’s a taxable trade. But I know what you are saying, people are doing thousands of trades and are they keeping records…well they should be and they better be, especially when they are making profits.

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also I would add most people (in UK) just think “will I make over 12k profit outside my ISA” - if not they just trade and keep no records, and that is the majority of people so most have no need to track anything.

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That is actually what I am thinking. Most people in the UK have their stock trading account under S&S ISA account and only use general invest for the stocks are not available under ISA such as many Chinese stocks, penny stocks, etc. So, if you just have about £6k (Say) on invest you will hardly ever exceed the £12,300 gain a year.

Also, many people do not need to do a self assesment, as they are not self-employed and their source of income just comes from a single employment.
But I think it is probably worthy to keep the record of CSV file and the record of balance on the start of the tax year and the record of the balance at the end of tax years that could be used when needed.

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There are some previous threads on this subject that are worth reading

Here is a calculator that correctly deals with the UK matching rules

http://www.cgtcalculator.com/default.htm

The author says it can cope with over 10,000 trades.

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