We’re excited to announce that in early 2024, we’re launching Portfolio transfers - one of our most requested features! You’ll be able to seamlessly move shares from your old broker to Trading 212! We will also support outgoing transfers.
And because your financial freedom shouldn’t come with fees, Portfolio transfers will be free!
Good news. How about transfers between UK spouses who both have Trading 212 Invest accounts? This is allowed by HMRC as a capital gains tax-free transfer. Nothing is sold.
Interactive Investor, for example, can do this in a couple days simply by receiving a instruction via their website from the donor spouse. (They require the spouses to have the same residential address.) For instance, I can simply instruct “Transfer 100 shares MSFT to account… [my spouses account]”
It is easy to implement since it is just a change to their records about beneficial ownership, without involving a third party. The donor ticks a box to accept responsibility for all tax consquences. Of course the capital gains tax basis is transferred unchanged.
I find this very useful for tax planning. Better that some dividends be taxed at 8.25% in my spouse’s account than at 39.35% in mine. There can be other benefits with regard to capital gains tax planning and harvesting of gains and losses.
I appreciate that this is only a UK thing and that as Trading 212 is international it may not wish to implement features that are country-specific. However, it is a significant reason why I keep holdings on a different platform.
In connection with portfolio transfers, it would be nice to offer the option for customers to edit their cost basis or average price*.
If I transfer in MSFT shares I would like to show my true cost basis. Also, if I hold MSFT on Trading 212 and also on some other platform simultaneously then I would like to be able to edit-in my cost basis per share, averaged over all platforms on which I have bought MSFT.
*This option already exists on competing platforms.
100% agree with this. When I transferred and had to re-buy within T212 it resulted in the averages bearing no resemblence to the actuals. I was incredulous when T212 told me it was not possible to change it and that I am still reliant on a separate Excel spread sheet!
Appreciate ‘early 2024’ has been communicated so you don’t have to commit to a particular launch date…Is the expectation that it’ll be ready before the end of the current tax year? Are you able to say yet, or still too early to say?
Ok, but what about after transfer of cash and repurchase? My problem is that I had to sell my assets, transfer cash and re-buy. The averages showing in T212 bear absolutely no resemblance to what the averages of my purchases actually was.
This would not be true under UK tax rules, since shares sold on date X and repurchased on day Y, within 30 days of X, take as their basis cost for capital gains (or loss) for the sale on X the repurchase cost on the subsequent Y.
Once repurchased the shares retain the original cost basis they had before day X. This is helpful to those who wish to move shares between platforms by sale and repurchase without incurring a substantial taxable capital gain.
I’ve often done this with X and Y being the same day and time. It causes me to book a small capital loss equal to the bid offer spread.