X-O, capital gains not on the tax certificates

mroller

I have traded bonds on x-o last year and made some profit which is a combination of coupons, accrued interest and capital gains.

I have recently received the annual tax certificate (from x-o), I noticed that capital gains were missing so I queried this with them, they said it is my responsibility to calculate the capital gains.

Is this standard practice or specific to x-o?

How do I prove this to HMRC? (I thought brokers would send this information to HMRC independently to stop people cheating on their tax returns)

Any thoughts appreciated.

grey_gym_sock

i think it's standard.

you keep, or print off, the dealing notes when you buy and sell bonds (or equities). that should enable you to calculate capital gains, as well as providing evidence if necessary.

gadgetmind

Capital gains tax is pretty much an honesty box and you have to keep track of things yourself. Issues such as certificated shares and holdings with multiple brokers (and thus section 104 holdings) means that no reports from brokers to HMRC would help track things.

What type of bonds were they? As I'm sure you know, Qualifying Corporate Bonds (QCBs) are exempt from capital gains and such profits are treated as income.