Trading212 5.2% APY

pecunianonolet

New refer a friend campaign is live from today.



https://helpcentre.trading212.com/hc/en-us/articles/360007291258-Invite-Your-Friends-Get-Free-Fractional-Shares

masonic

pecunianonolet said:

InvesterJones said:

pecunianonolet said:

How are the returns treated? Will Trading 212 report to HMRC or will the underlying banks (Barclays, Morgan Stanley) they "invest" the cash with report this as interest or will it be treated as CG and you can use your CGT free allowance as technically your returns are coming from QMMF's?

Returns from QMMFs are likely treated as interest anyway as they're >60% cash/fixed interest securities.

Ok, is there any HMRC guidance on it? Would this be reported by trading 212 or the respective bank where the assets go? Trading 212 claims they are not a bank so if any returns need to be reported via self assessment it would make it less attractive, not signing up for self assessment ust for that.

It is the same situation as for any bond fund. T212 should provide you with a consolidated tax certificate a few weeks/months after the end of the tax year and if your total interest for the year exceeds your tax free bands then you'd need to ensure HMRC is aware of it, just like you need to check for savings accounts (as some do not report / report incorrectly). You would not need to register for SA just for this purpose.