Tax and CGT question

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1

Hi everyone,

First of all please let me tell you, when it comes to tax, maths etc Iā€™m not very smart. Ive always been employed so my tax has always been worked out by my employer.

I have a tax question that I donā€™t want to get wrong.

Here is my scenario,.

Initial investment into ā€œinvest accountā€ = Ā£17k
Total realised profit after stock sales = Ā£26k

Then I transferred Ā£10k to my bank account for home improvements and my initial investment of Ā£17k, leaving Ā£16k in my trading 212 account. I lost quite a lot of that within a few days leaving me with Ā£12k

I transferred that amount into my ISA account where I have lost Ā£1400 leaving me with Ā£10600

Can I minus the Ā£1400 loss in my ISA count towards the total made in my invest account making it Ā£24600 instead of Ā£26k realised profit,

Of note, with being very very new to this, I have done many day trades to familiarise myself with the platform and learning the charts etc.

I guess what Iā€™m asking is, at present, do I have to pay tax on Ā£26k or Ā£24600?

NB: I earn Ā£40k per year salary,

Once again, Iā€™m really not intelligent when it comes to this kind of stuff but Iā€™m trying to learn it as quick as I can to get it right.

Thanks so much

2

If I read this right you grew 17 to 43 for a gain of 26. You then lost 4. So have net gain of 22, provided you actually realise the losses. What happened to funds in the ISA is irrelevant. You have an annual allowance of 12.3, so will have tax on 9.7. With salary of 40 you are basic rate taxpayer, tax will be 10% giving Ā£970. But if you do not realise the 4 of losses you will be taxed on 26, minus the tax free allowance of 12.3.

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3

That makes perfect sense. Thanks so much. I did realise the losses as I sold the stocks (no idea why).

Ā£970 in tax is awesome or even a couple of thousand. I was expecting to pay 40% of my profits. ie: 40% of 26k = Ā£10400

This is good news.

Thanks so much