Do Hargreaves Lansdown prepare tax statements?

blizeH

Thanks all for the replies, so Pippi, you're saying it does go by actual profit on each share, not just how much I've spent (or withdrawn) from shares?

I guess what I'm saying is, let's say for example I bought shares in 60 different companies in a year, and I sold shares in 50 companies. The net result was I made £5k... as long as I document everything (ie every sale, and every purchase) am I right in thinking only the £5k would qualify for CGT? ie the profit/loss on each individual share is irrelevant, only the total £ bought and total £ sold in that financial year?

To be honest I'm tempted just to bail out of the fund now and just stick with what I have in my ISA, adding to it each year I can.

gmgmgm

Would it make sense to telephone them and ask?

PippiShortsock

blizeH wrote: »

... let's say for example I bought shares in 60 different companies in a year, and I sold shares in 50 companies. The net result was I made £5k... as long as I document everything (ie every sale, and every purchase) am I right in thinking only the £5k would qualify for CGT? ie the profit/loss on each individual share is irrelevant, only the total £ bought and total £ sold in that financial year?

It's irrelevant what you buy during a year. Pretty much all that matters is what you sell and how much you bought those specific shares for, no matter how long ago the purchase was. You can offset the loss made on one sale against the profit of another and, as long as the net profit does not exceed £10,900 in 2013/14, you should not be liable for CGT.

So if you bought shares in ABC plc in 2003 for £1,000 and sold them this year for £20,000, you would be liable for CGT (at 18% or 28% depending upon your tax rate) on £8,100 of that profit. If you also sold shares in XYZ plc this year for £1,000 which you had bought for £10,000 last year, that loss would offset your tax liability.

HMRC's website is quite helpful with worked examples:
http://www.hmrc.gov.uk/cgt/intro/working-basics.htm

blizeH

Thank you so much for the clear explanation Pippi, I'm going to start making records now I really have done probably almost 50 transactions so far this year already, I've made a bit of profit but after fees etc hardly anything and the more I think about it, the more I realise it's stupid having shares in ~30 different companies and far better just to invest in a tracker.

Much, much easier from a tax point of view then too!

dzug1

Even if your capital gains and losses balance out - so no CGT is payable - you still need to have the records to prove that is the case and complete your tax return

And I'm sure Hargreaves Lansdown provide annual summaries (twice yearly I think - but it may depend on the type of account you have with them) and will automatically provide a tax certificate for dividends should one be needed.