Tax Accounting Purposes UK

Hi i use other brokers prior to Trading 212 and i received detailed yearly statements for all my holdings is this something trading 212 provides? including all dividends & fees paid etc

Thanks

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T212 currently offers a monthly statement which breaks it down per month and then you just put everything back together at the end, not too sure on the scope of tax data as I use the ISA account solely.

Yearly statement has been requested and the feedback given was that it is being looked at being added. I can’t remember if a timescale was given or not.

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I think I read on here that they will provide it on request. Personally, I think I can cope using the monthly statements.

Such statements are helpful, but are never a substitute for doing one’s own work. Every other broker I have used misses out some important information in their consolidated tax statements, leaving me with calculations to do on my own. For instance, with some I need to look up the USD/GBP exchange rate on days of purchase and sale of US stocks to correctly figure my GBP value of capital gains, or GBP value of each dividend. No broker correctly reports any of the taxable “excess reportable income” retained in ETFs (both distributing and accumulating types). For this I have to go to the websites of Vanguard and iShares and read the relevant reports. E.g. https://global.vanguard.com/documents/institutional/vf-plc-excess-reportable-income-30-june-2019.pdf

Here is the data for VNRT. There were 5 dividend payments, 4 paid out and 1 retained. All are taxable. The retained one increases the basis cost of my shares. No broker helps with this information.

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Knowing that I will have to do this work I keep my own records using a Google sheets spreadsheet. I find it easiest to do this on a daily basis, rather storing up a big task for the end of the year. Exchange rate information is easily produced using

=GOOGLEFINANCE("USDGBP", "price", "01/01/2020",366)

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Currently im capturing all my daily transactions which has the exchange rate for each buy and sell.

but i am using an ISA so hopefully i don’t need to worry to much about the tax

An isa is tax-free.

Outside an ISA, capital gains tax on shares is charged at 10% or 20%, depending on your tax band. For 20/21 your first £12,300 is free from capital gains - couples can pool their allowance.

No. There is no sharing or pooling of capital gains tax allowances. There is a per person allowance of £12,300, so a couple can shelter £24,600 of gains, but each needs to individually have £12,300 of gains on stocks they have personally bought, owned and sold.

That’s not what Which? Is telling me, unless they worded it poorly.

In the 2020-21 tax year, you can make £12,300 in capital gains before you have to pay any tax - and couples can pool their allowance.

The way Which? state the facts is misleading as it gives the impression that pooling is easy. What they should have said is that transfers between spouses is exempt from CGT. This means that assets can be transferred between husband and wife or civil partners so that both annual CGT allowances are used. This effectively doubles the CGT allowance for married couples and civil partners. The transfer must be a genuine, outright gift. The transfer requires paperwork and means real transfer of ownership, not just something you do by completing lines on your two tax returns.

Some brokers facilitate the transfer of stock holdings between the accounts of two spouses who both have accounts with them. Trading 212 does not yet do this.

Capital gains tax liability is wiped out at death. It is a good tax planning strategy to transfer all assets having large pregnant capital gains into the name of the spouse about to die so that the surviving spouses inherits assets clear of pregnant capital gains.

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Thanks for that clarification.

Agree that Which makes it sound a lot easier than it apparently is then!

@Bavp30 We issue tax statements upon client’s request. Here is what you can expect:

As @Richard.W pointed out - we’re also in the middle of improving further the statements. ETA: Q3 2020. :pushpin:

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In my country (Czech Republic), we have to include not only the gain in the tax return, but both the proceeds and the costs needed to get it (i.e. the purchase price + commission).

Something that Interactive Brokers provides for each sale (here as “basis”):

It’s quite cumbersome to calculate it by hand (even in Excel) and I’m therefore reluctant to do too many trades with T212 if I’m not able to read these figures from the statement.

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Hi Tony. I sent the account balance that I receive every month to my tax auditor in order to know if at the end of this year he will be able to make my incomes declaration. He ask what’s the numbers in the circled column, because they don’t correspond with the difference btw purchasing price and selling price (see the account balance of May you sent me that I turned in pdf for my consultant)
Can you please clarify:

More in general he asks if it will be possible to get all these informations of my movements at the end of the year in xml or excel.
I really like Trading212 but if at the end of 2020 I will not have the way to make my income declaration as required by Italian law (according with what my consultant asks me), I’m sorry but I will need to look for another platform that present datas as required in my country. Looking forward hearing from you back, thank you !

By performing reverse engineering of the statements, I figured out that the “result” is the difference between the AVERAGE purchase price of your holdings of that instrument (in your account currency) at the time you sold it MINUS the EUR sell price.

Note that usually (at least in the Czech Republic), we calculate the result using the FIFO algorithm (i.e. we don’t use average price).
I have personally created a spreadsheet where I copy-paste the daily statements from T212 and calculate the base price using FIFO with a custom function.

Good luck in finding one. I have requested tax statements as spreadsheets from other brokers: including AJ Bell and Interactive Investor. No luck. Neither Degiro or Hargreaves Lansdown provide the data as spreadsheets csv data. It’s hard to understand why so backward in a day when this should be an easy. This is an area in which Trading 212 could be leading.

The only broker who I have worked with that allowed me to download all my data in a spreadsheet is Merrill Lynch. They have been providing that service for at least the past 15 years.

Do other people know of brokers who provide data in spreadsheets?

In the UK it is based on average price, plus some fiddly rules about matching shares bought and sold within 30 days of one another. It is next to impossible for a broker to provide the right cost basis data on which to calculate capital gains after a stock sale. For one thing, a client might have others holdings in the same instrument on another platform. Keeping your own spreadsheet is the way to go.

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Do other people know of brokers who provide data in spreadsheets?

I believe Degiro does provide transaction history export to CSV. Of course you have to do some grouping and calculate the cost basis on your own…

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Taxes can make the pie and AutoInvest quite complicated, unless you are tax exempt or invest in an ISA (in the UK).

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Sorry, you are correct. I was thinking only about Degiro’s yearly report which comes as pdf. But you can download transactions and dividends at any time

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In Italy we have these professionists:

That prepare the datas from foreign platforms in a friendly way for the Italian taxation.
They do this for the main platforms as Degiro and Etoro but unluckily they are not familiar with T212. They ask me the questions that I wrote in my post before.
I would like to continue my trading adventure with T212 but before to deposit other money to invest I need to be sure that everything will work smoothly for my taxation statement preparation. I hope that somebody from T212 will give some feedback here.

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Hi is this in Degiro or in T212?