So this is all hypothetical because I’m not making enough money to pay CGT yet, but say I have £100,000 of stocks and this it doubles to £200,000. When would I pay CGT? When I sell the shares or when I actually withdraw this money from T212?
Because if it’s the former, and I sold my £200,000 of shares and bought £200,000 of something else straight away, would I still be hit with a big CGT bill?
And if it’s the latter, does that mean I would be allowed to withdraw the CGT allowance each year and never have to pay CGT?
It is later. Tax liability is created when you sell the shares. And yes, you can sell just enough each year to use up the £12,300 allowance.
If you were to rebuy same number of shares in the same company within 30 days, for say £199,999, then you would have taxable gain of £1, rather than £100,000. The basis cost for the disposal of £200,000 is the cost of the subsequent repurchase. This is useful if wanting to move a holding between brokers via a sale and repurchase without triggering a substantial capital gains tax bill.
So if I bought a share at £1, and a share at £9 and the price ended up being £5 and I sold one of my two shares, would I technically have made a profit from my £1 share, a loss from my £9, or is it always just based on average price?
In which case I presume I could just look at my Trading212 history page which would show me total return to put on this year’s annual tax return?
For capital gains tax purposes, its usually based off the average price. However, there are special rules for stocks bought and sold within 30 days. Have a look here.
It is not fifo in UK. The cost price per share is average price of all prior purchases, referred to as a “section 104 holding”. Special rules for transactions on same day or repurchases within 30 days.
The total return shown in the T212 history does not properly account for the 30 day rule and same day rule. I would always do my own calculations. But if you buy, hold, sell all, and do not rebuy within 30 days, then the total return will correctly reflect taxable CG.
does anyone know if a regular accountant would work out the capital gains for me if I just give them a list of shares bought and sold? has anyone done this? maybe they would charge more I’m not sure to do the calculations as it seems like extra work than normal. I am not looking forward to going through my entire history working this all out myself with all trades and currency conversions etc for a year. seems like a lot of effort.