Can I count brokerage monthly fee as cost in tax return?

ColdIron

megatower said:

wmb194 said:

Nope. The cost has to directly relate to the transaction. What you see on the contract note is what you can allow.

The cost needs to "wholly and exclusively" relate to the acquisition or disposal of the asset. The credit in question is related to an account fee that you'd have to pay whether or not you made the trade.

https://merrantiaccounting.com/what-counts-as-allowable-expenditure-for-capital-gains-tax-relief/#:~:text=1.,sold%20and%20therefore%20not%20allowable.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250

wmb194 - for the example in the message above, should I just use £100 as cost (effectively the same as there is no commission)? Thanks.

You should use the details on your contract note(s) (not periodic statements by your platform). It is the only thing that is authoritative 

megatower

That's what I would get from an ii transaction receipt, presumably that's the same as contract note you referred to?

wmb194

megatower said:

wmb194 said:

Nope. The cost has to directly relate to the transaction. What you see on the contract note is what you can allow.

The cost needs to "wholly and exclusively" relate to the acquisition or disposal of the asset. The credit in question is related to an account fee that you'd have to pay whether or not you made the trade.

https://merrantiaccounting.com/what-counts-as-allowable-expenditure-for-capital-gains-tax-relief/#:~:text=1.,sold%20and%20therefore%20not%20allowable.

https://www.gov.uk/hmrc-internal-manuals/c apital-gains-manual/cg15250

Very useful references and CG15250 is very clear to my original question "You should not allow a deduction for subscriptions for periodicals or for publications by analysts, stockbrokers or other professional advisers, whether for public or private circulation. Other similar types of expenditure are not allowable.".

wmb194 - for the example in the message above, should I just use £100 as cost (effectively the same as there is no commission)? Thanks.

Yes.

"That's what I would get from an ii transaction receipt, presumably that's the same as contract note you referred to?"

Usually they're referred to as contract notes but a transaction receipt could be another name for it.

Edit: ii's help page refers to contract notes and it says you find them in 'document history.'

https://www.ii.co.uk/help/using-your-account/account-administration/document-requests

ColdIron

megatower said:

That's what I would get from an ii transaction receipt, presumably that's the same as contract note you referred to?

Contract notes may not show show indirect, ancillary 'trading credits', it may depend upon the charging structure that the platform uses. Why don't you check yours and see? They are the only thing HMRC will accept as authoritative

megatower

I did check earlier, they actually do show trading credit. The £100 example is exactly what ii actually does. 

ColdIron

There's your answer then

megatower

wmb194 said:

Usually they're referred to as contract notes but a transaction receipt could be another name for it.

Edit: ii's help page refers to contract notes and it says you find them in 'document history.'

https://www.ii.co.uk/help/using-your-account/account-administration/document-requests

I should have looked more carefully - the transaction receipt I referred to was on my local drive for a long time and I just presumed they are "transaction receipt", but they were actually downloaded from the "contract notes" option!