Trading212 advice

Catonthemoon

A/C now open. Have seen online that T212 also have a ‘free fractional shares offer’ for customers opening new accounts.

Can I claim those free shares retrospectively or are they only given to customers who use a link? (I did it via the T212 app).

masonic

You need to claim at sign-up via a link.

Catonthemoon

About a month ago, I opened a T212 a/c. £100 into a pie consisting of oil companies & £100 into S & P 500.

The value of the investment today is £226, so, I’m up about £26 thanks to the oil price.

I opened these as 2 separate investments not as an ISA. If I were to sell today, does that mean that the increase is subject to tax?

If yes, would T212 deduct any tax due & pay me the net amount OR

would it mean having to deal with the IRS?

Middle_of_the_Road

https://www.gov.uk/capital-gains-tax/work-out-need-to-pay

the £26 would be covered by your capital gains allowance. We are not taxed by the IRS, it’s the Inland Revenue in the UK

Catonthemoon

Any taxation due in the UK would be payable to HMRC, but for some reason, because I was buying ‘mainly’ US stocks (ie S&P 500), I thought any gains might be subject to US taxation.

Furthermore, when opening the a/c, I was offered the option of ticking a box; doing so meant any gains would be taxed at 15% instead of the usual 33% - it was something along those lines, can’t remember exactly.

In any event, it seems I’ve nothing to worry about as the amount is so low.

This is all new to me, so,on a learning curve.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82087221#Comment_82087221

Sounds like you're conflating two separate things - 'gains' will normally be interpreted as relating to increases in capital value of an asset, whereas the tickbox for claiming tax relief from 30% to 15% relates to dividend income from those assets, which is subject to withholding tax in the USA as well as income tax in the UK.

Catonthemoon

Yes, that’s it - it’s coming back to me now 💡

Catonthemoon

A few weeks ago, I invested £200 in the S&P 500 + £100 into a pie. I also bought an individual stock (£50 in SpaceX).

My T212 summary now shows as ‘Investments £300’; Stocks ISA £50 ( For this example, I’m just using the original amounts invested…of course they’ve since changed).

I had thought that all of the sums I put in were going into a S & S ISA (knowing that it was tax free), but, as you can see, that’s not what happened.

1. Although, very small amounts, could the Investments somehow be liable to tax (assuming there are gains). If so, is it now too late to move the £300 from Investments into the ISA where I still have £19950 unused?

2. Because the numbers are so small, does it really not make much odds; in other words, just leave things as they are?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82111462#Comment_82111462

You aren't going to have £3,000 of gains, so assuming you don't have other capital gains using your annual exempt amount, there will be no tax liability.

I would suggest now (or before the end of the tax year), sell the investments you accidentally bought outside of the ISA. Move the cash from the Invest account into the ISA. Buy the investments back. You may have to wait for the trade to settle before the money can be moved (i.e. 2 working days).

Then you will have everything inside the ISA as intended.

tom192

https://forums.moneysavingexpert.com/discussion/comment/82111462#Comment_82111462

Sounds like you went into the investments tab rather than the ISA tab at the top when you bought the Space X one, you have to be careful, if you use the 212 debit card cashback from this gets put into your invest section which is the general investment side outside of the ISA. Any thing to do with the card you have to be in the general investments section.

You can do the trick that I do to get the cashback into the ISA side. Choose a pie that needs a relatively large amount before it runs the investment, I use the almost daily dividends pie, it requires £50 before it will do any investing into shares, you can then withdraw your earned cashback from the pie before it invests providing you do it before you get £50 in the pie. Once it's withdrawn you can then move it to the ISA side and put it into cash ISA or Stocks and shares ISA.