Income from selling and buying shares.

6022tivo

Hello

I am starting to buy and sell shares, buy them low one week, sell high the next.

Need a little tax advice??

I am not sure about the capital gains tax?? Does that also take into account possible losses??

Also, I do get some tax credits and have to declare income like this over £300, so is this type of income classed as declarable?? And do I include any losses of the profits before declaring the income??

tradetime

Try reading through this and see does it answer your questions. My suggestion would be that if you still have questions after that, then write them down, telephone one of their help lines and ask. The reason I say that, is that while the collective on the boards will be as helpful as they can in answering any questions, tax is not something you want to get wrong. I'd even go to the point where if there was anything I was really uncomfortable with, of writing to them to get an answer in writing.

In brief, losses are factored into your capital gains calculation. I'd have no idea of the relationship between capital gains and tax credits, this would obviously be something important for you to have clarified.

Jake'sGran

Anything over your tax allowance is taxable but the dividends from shares are already taxed when you receive them. Every year I add up all my income and add dividends and the tax deducted. It's a job I hate but I always seem to have income a little over my tax allowance. You can forget about capital gains from what you say i.e. if you are entitled to tax credits. Is this the extra income people get in retirement when they do not have over a certain amount in savings? You may find the information you require on the Inland Revenue site.