etoro -Section 104 holdings software/accountants

Shop

Hi, Can anyone recommend an online tool or firm that does the workings for UK CGT, based on an etoro account transaction download.


I foolishly thought you just used the profit and loss totals, but now realise you have to pool trades using the HMRC rules.


The cgtcalculator website seems to work quite well, but they don't offer a conversion tool for etoro, I also found a copy and paste spreadsheet tool but was for the German tax system only.


Any solution providers for etoro UK tax returns would be appreciated - thanks

Malthusian

Do you actually have gains that need to be reported?

You only need to report the gains if you have realised gains (i.e. cashed outinvestments at a gain) over the £11,700 allowance in 2018/19;

or you have cashed out more than £46,800 in 2018/19 and you are registered for self assessment (regardless of what the gains or losses were).

This will apply to a tiny minority of eToro investors.

eToro should be able to produce a CGT report for you. This is bog-standard functionality for any modern investment platform. If they don't, this illustrates their expectation of how many of their clients will make money.

Shop

Etoro provide detailed transaction reports that calculate profit and loss totals, but these are no good for CGT rules.


I am registered for self assessment and need to report realised gains.


I contacted etoro, they said they don't give tax advice and don't provide CGT tax reports. Not having the expertise to do the calculations myself, I have now employed a tax adviser.

bowlhead99

Malthusian wrote: »

eToro should be able to produce a CGT report for you. This is bog-standard functionality for any modern investment platform.

To be honest, that surprises me a little but perhaps that's because some mainstream providers don't really qualify as 'modern' investment platforms?

Monitoring and reporting my s104 pools for all my assets that I hold or held unwrapped during the year would certainly be on my "wish list", but I don't know how much I'd want to pay for it (especially given the report output would be garbage if I held the same assets elsewhere, which might sometimes happen).

colb15

Malthusian wrote: »

Do you actually have gains that need to be reported?

You only need to report the gains if you have realised gains (i.e. cashed outinvestments at a gain) over the £11,700 allowance in 2018/19;

or you have cashed out more than £46,800 in 2018/19 and you are registered for self assessment (regardless of what the gains or losses were).

This will apply to a tiny minority of eToro investors.

eToro should be able to produce a CGT report for you. This is bog-standard functionality for any modern investment platform. If they don't, this illustrates their expectation of how many of their clients will make money.

Thanks for clarifying this, so if you cashed out over the 4*CGT allowance and are not registered for self-assessment you don't need to report anything. Also bearing in mind your gain hasn't exceeded 11,700

bowlhead99

colb15 wrote: »

Thanks for clarifying this, so if you cashed out over the 4*CGT allowance and are not registered for self-assessment you don't need to report anything. Also bearing in mind your gain hasn't exceeded 11,700

Basically correct. If after applying the £11700 exemption to your gains, you have no gains left over that aren't exempt, so there's no tax to pay, and you are not required to file a self assessment, there is no reason to tell HMRC about your disposals even if they are over 4x the annual exemption.

If you leave the clarification as broad as "not registered for self assessment...", that's not quite correct. As there are no doubt a number of people who *should* file a self assessment (e.g. have been asked by HMRC to file one), but they simply haven't registered yet

colb15

bowlhead99 wrote: »

Basically correct. If after applying the £11700 exemption to your gains, you have no gains left over that aren't exempt, so there's no tax to pay, and you are not required to file a self assessment, there is no reason to tell HMRC about your disposals even if they are over 4x the annual exemption.

If you leave the clarification as broad as "not registered for self assessment...", that's not quite correct. As there are no doubt a number of people who *should* file a self assessment (e.g. have been asked by HMRC to file one), but they simply haven't registered yet

Didn't realise HMRC reach out to tell people they should be filing through self-assessment.

It's a little confusing really, I've just run through the questions they have on their website to check if you need to send a self assessment. The last question asks "Did you get more than £10,000 from dividends or savings and investments?". If you received £11,000 then the answer would be yes. But from other sections on their website (as per above) you only need to file if you have made gains over £11,700?

colb15

colb15 wrote: »

Didn't realise HMRC reach out to tell people they should be filing through self-assessment.

It's a little confusing really, I've just run through the questions they have on their website to check if you need to send a self assessment. The last question asks "Did you get more than £10,000 from dividends or savings and investments?". If you received £11,000 then the answer would be yes. But from other sections on their website (as per above) you only need to file if you have made gains over £11,700?

Just realised the question relates to any of the below, which wouldn't include any capital gain from share sales.

Income from savings and investments includes:
savings interest
money from bare trusts
interest in possession trusts

bowlhead99

colb15 wrote: »

Just realised the question relates to any of the below, which wouldn't include any capital gain from share sales.

The question was referring to income you made from savings and investments. Not gains on disposals of your assets.

Didn't realise HMRC reach out to tell people they should be filing through self-assessment.

Yes, if they want to know more about you.

E.g. if they can see from your employer's PAYE returns that you're on target to earn over £100k and will lose some of your personal allowance. Or if you filed self assessment in a previous year e.g. for having your own business or property rentals etc, they will keep telling you to do a return; you'd have to do it or be fined, unless you write and tell them that you no longer have any of the activities and they accept what you say after you've done the last return they want to see

Mishmash1234

Hello Shop, I have the same situation you wrote about with eToro and am looking for someone to do the proper accounting for the many trades made in eToro, Could you please tell me who you hired to do this? I'd like to reach out to them for help as well and would really appreciate it if you could pass their contact info along.

Thank you!