Help..CGT for online trading

shamaila

Hi everyone

I have a market master account with Barclays Stockbrokers and need some information in regards to capital gains tax.

I invested in some stocks last week which are now worth 100K, I haven't sold these as of yet but once I sell these will I need to pay capital gains tax on the profit that I have made. I am fairly new to all this and don't know much about CGT.

If so how much and do I declare this to HMRC myself or will they get in touch with me

Any help would be appreciated

Vortigern

http://www.hmrc.gov.uk/cgt/index.htm

Will you make a gain(profit) of more than £11,000 in the current tax year?

If so, you'll have CGT to pay. See the link above for the records you need to keep and how to report your gain.

shamaila

Yes I will make a fair amount of profit when I sell these shares. I've read that but still not quite sure. What I don't declare to hmrc what will happen?

bowlhead99

You have a CGT allowance of £11k per tax year. If you sell shares for more than you paid for them and make >£11k profit within a single tax year (after offsetting the losses made on the ones that you sold for less than you paid for them this same tax year, and any losses that you made and declared in previous years), then yes, you need to tell HMRC.

If you don't normally do a self assessment tax return, you only need to do one for the year if you have tax to pay. If you do usually do a self assessment you will now need to fill out the CGT page if either you make over £11k of profits or your disposal proceeds during the tax year were over £44k.

http://www.hmrc.gov.uk/cgt/intro/report-gain.htm#1

Also if you only bought the shares last week and haven't sold them yet, you might not actually make any gains by the time you sell them.

Last time you were on here asking about shares you were asking lots of newbie questions about how buying shares worked and what shares would be good to buy. So if you are suddenly now selling £100k tranches within a week of buying, well done for how your trading has worked out (or well done on your imagination).

shamaila wrote: »

What I don't declare to hmrc what will happen?

Potentially a fine larger than the tax bill, plus interest, plus jail time.

shamaila

I actually invested 30k in a company last Monday which now is giving me 100k in total, what if I transfer 15k into isa do I still need to pay CGT on that?

IronWolf

shamaila wrote: »

I actually invested 30k in a company last Monday which now is giving me 100k in total, what if I transfer 15k into isa do I still need to pay CGT on that?

Yes, shares cannot be transfered into an isa, they are sold and rebought triggering a gain subject to CGT

Thrugelmir

shamaila wrote: »

I actually invested 30k in a company last Monday which now is giving me 100k in total,

Wow. That's some achievement.

James_B.

shamaila wrote: »

I actually invested 30k in a company last Monday which now is giving me 100k in total, what if I transfer 15k into isa do I still need to pay CGT on that?

What's the company? I assume, as you are now about to sell, that you've no need to keep it a secret.