Tax declaration due to investments

RobHT

Hi,

I need to know how I can declare my capital gains in April 2021.
I'm not sure on how I can comfortably and precisely report my earnings to HMRC, I use platforms that provide very few informations and they don't release the amount gained in the report (when I sell stocks), so for the moment it's just up to me to count it.

So, how can I comfortably declare my gains after 12300 pounds? Or is the platform that in April will give me a complete report?
Are they supposed to do it? In case not, I wonder if every platform does it.

Dividents are not a concern.

[Deleted User]

"Or is the platform that in April will give me a complete report?"

Ask them. They may show you how to extract required information if it's there, or even go extra mile and send you relevant CSV files etc.

"Are they supposed to do it? In case not, I wonder if every platform does it."

That depends under what jurisdiction your platform falls, as I can imagine different jurisdictions have different regulations regarding reporting.

In general, in my experience, each investment needs certain care, sometimes in form of manual spreadsheet filling, other times just downloading forms & reports from the platform. If it brings you profit, it's probably worth it - after all we report it only once a year.

masonic

I've always kept my own records as I go along in a spreadsheet. Not all platforms provide a sufficient annual summary. All platforms do provide contract notes, and those contain all the information you need to work out your gains and losses.

If you are on PAYE, then probably the easiest way to declare it is to write to HMRC with the details.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

RobHT

The problem is that how HMRC is gonna accept my spreadsheet .
They expect something official, what I can give them?

In one platform I receive just an email with how much I bought and sold, that's it.
On another one I receive more info, but always of the same level of info, I don't receive a summary of what I gained monthly or annually.

I'm afraid that HMRC will come to me and ask more details, and that will be a pain, moreover, I'm not sure in which form they require these proofs.

At that point, if they make a claim against me or my tax declaration is not enough for them, how we'll sort it out?

eskbanker

RobHT said:

The problem is that how HMRC is gonna accept my spreadsheet .
They expect something official, what I can give them?

[...]

I'm afraid that HMRC will come to me and ask more details, and that will be a pain, moreover, I'm not sure in which form they require these proofs.

You don't need to provide them with anything other than a self-declared figure for chargeable gains.  It's your responsibility to calculate that figure but they don't need you to show your workings unless they choose to investigate further.

https://www.gov.uk/capital-gains-tax/records
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

In fact, spend time properly digesting the whole guide at https://www.gov.uk/capital-gains-tax

RobHT said:

I don't receive a summary of what I gained monthly or annually.

Just to be clear, it's only disposals (sales) that trigger CGT, it's not something you need to monitor/manage/report annually if you're not selling anything, so the important documents you need to keep (and feed into your spreadsheet or other workings) are those detailing all purchases and sales....

RobHT

eskbanker said:

RobHT said:

The problem is that how HMRC is gonna accept my spreadsheet .
They expect something official, what I can give them?

[...]

I'm afraid that HMRC will come to me and ask more details, and that will be a pain, moreover, I'm not sure in which form they require these proofs.

You don't need to provide them with anything other than a self-declared figure for chargeable gains.  It's your responsibility to calculate that figure but they don't need you to show your workings unless they choose to investigate further.

https://www.gov.uk/capital-gains-tax/records
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

In fact, spend time properly digesting the whole guide at https://www.gov.uk/capital-gains-tax

RobHT said:

I don't receive a summary of what I gained monthly or annually.

Just to be clear, it's only disposals (sales) that trigger CGT, it's not something you need to monitor/manage/report annually if you're not selling anything, so the important documents you need to keep (and feed into your spreadsheet or other workings) are those detailing all purchases and sales....

Thanks, I'll read again the stuff from HMRC, but I'm sure I didn't find precise indications on what they want.
I sell a lot, therefore I should report, the problem is that there are too many "positive" sales .
I would give them only my personal spreadsheet, where there are 2 simple columns, or actually I send them a .txt file with the CGT, or I just note it down in the general document they want , let's see if they like it.

Or... I can also don't declare anything , why I'm complicating my life damn.

AnotherJoe

RobHT said:

eskbanker said:

RobHT said:

The problem is that how HMRC is gonna accept my spreadsheet .
They expect something official, what I can give them?

[...]

I'm afraid that HMRC will come to me and ask more details, and that will be a pain, moreover, I'm not sure in which form they require these proofs.

You don't need to provide them with anything other than a self-declared figure for chargeable gains.  It's your responsibility to calculate that figure but they don't need you to show your workings unless they choose to investigate further.

https://www.gov.uk/capital-gains-tax/records
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

In fact, spend time properly digesting the whole guide at https://www.gov.uk/capital-gains-tax

RobHT said:

I don't receive a summary of what I gained monthly or annually.

Just to be clear, it's only disposals (sales) that trigger CGT, it's not something you need to monitor/manage/report annually if you're not selling anything, so the important documents you need to keep (and feed into your spreadsheet or other workings) are those detailing all purchases and sales....

Thanks, I'll read again the stuff from HMRC, but I'm sure I didn't find precise indications on what they want.
I sell a lot, therefore I should report, the problem is that there are too many "positive" sales .
I would give them only my personal spreadsheet, where there are 2 simple columns, or actually I send them a .txt file with the CGT, or I just note it down in the general document they want , let's see if they like it.

Or... I can also don't declare anything , why I'm complicating my life damn.

You just tell them you made £x CG in the form (after remembering to deduct all expenses incurred on buying and selling).

One number. Thats it.

Odds are they will say "you owe £Y" rather than asking for further details.

If they do want details send a PDF of spreadsheet detailing buys sells costs (two columns doesnt sound like enough to do costs?)

dales1

I keep a spreadsheet for each investment, to work out the capital gain each year on any that have been sold.

I send a copy of each calculation to HMRC along with my tax return.

At the top of SA 108 (the capital gains summary form) it states

" You must enclose your computations, including details of each gain or loss".

AnotherJoe

I wonder if thats new?  I've not done that before and they didnt seem to mind but thanks for the correction.

dales1

Attaching CGT computations has been an HMRC requirement since at least 2013 ( ...  I'm sorry but I haven't kept a copy of prior HMRC forms).

Perhaps HMRC apply a "reasonableness" test to accounts that are seemingly honest; before insisting on submission.

CGT calculations are harder for people like me, who might sell parts of their holdings (eg to fund their annual ISA subs) or who hold across several platforms (which need to be "pooled").

For the OP, if he is just simply trading entire parcels of shares, in and out, then as Masonic says, the contract notes are the answer. If the trades are simply in and out and unique, then simply  calculate the gain on each one and put it on a SA 108 worksheet.

AnotherJoe

OK thanks, seem i missed it though to be fair was only on a property when i last had to pay.

This coming tax year i do have a chunk of tax to pay on shares so this has been useful to understand.