What about the exit fee?
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Iād like to know the answer to this question too as I bought some without noticing this. Perhaps someone from freetrade could enlighten us. Iām hoping a 5% fee doesnāt apply!
[Edit to avoid incredibly annoying forum āfeatureā of editing my posts]
As I understand it you donāt know the 5% fee, see the right hand side of the pay schedule in the KID
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I have a quick question, I looked through the forum and this thread but couldnāt find the answer.
If you sell some shares (not all of your holding) which shares are sold? Is it first in first out, first in last out or something else?
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@Markimus welcome! If you do a search for FIFO youāll find a few discussions. From memory, it isnāt a single, straightforward rule as far as HMRC is concerned.
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For the purposes of tax reporting, it doesnāt make any difference. (And I canāt think of how it makes any difference in any other circumstance.)
When you sell, you have to know the average price per share that you purchased at. So you can think of it as you selling an average share, not first or last in.
Edit: as philgq points out, there are special rules for shares purchased in the last 30 days.
Deals on the same day are crossed first regardless of order. Eg if you sold some in the morning and bought them back in the afternoon the purchase is still knocked of the sale.
Then itās last in first out for last 30 days.
Beyond 30 days itās a pooled base cost.
It gets more complicated as holdings with other providers all count and I am pretty sure Depository Receipts share the pool as well.
Where have you seen that? Is it in freetrades execution policy?
Nothing to do with Freetrade itās the tax law. I took the question to be a based on tax although reading it again it doesnāt actually say that.
In terms of the which numbered shares are sold I donāt know.
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Is there some ETA on when new ETFs will be added? Maybe some calendar of when new stocks/ETFs will be available each month?
We donāt have a strict timeframe for adding more ETFs hereās our plan for adding to the Stock Universe: New stocks! - #41
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Assuming you do not have an ISA account, only GIA. Up to Ā£12,000 of gains in one year are tax free - you would not need to report them at all. If you gains exceed that figure, you can do it via self-assessment
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Say your made a 20,000 profit. Could you sell 10,000 one year and then 10,000 the next tax year?
And not have to declare?
Absolutely, that is how wise people do!
Exactly. Unless your total sales in one year exceed Ā£48,000 (x4 your allowance) and you are registered for self-assessment
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Yes, try to use as much of your allowance as possible. Losses will offset gains, called allowable losses, you can sell shares in loss to get the gains under the allowance limit. As long as the total (gains - losses) is under this limit you donāt even need to report it.
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Unlikely to be a year soon that I am making more than 12,000 profit but always great to know this. Thank you!
Bear in mind it is not your yearly profit but total cumulativa gain. For example, if you invest Ā£10,000 today and it will grow at 5% per year, you will end up with Ā£26,000 in 20 years, which is Ā£16,000 gain. If you were to sell everything at once (assuming the exemption rates do not change), you would still be liable for CGT.
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Also may be worth bearing in mind that the Ā£12,000 allowance can be eaten up by other things as well as selling shares.
Rather than try and explain it poorly myself, Iāll instead leave a link to the Capital Gains Tax information page on Gov.uk
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When looking at a stock in your portfolio, is the investment gain/loss just the raw difference in the stock price, or does it also take into account other costs like stamp duty if it was a UK elligble stock, the FX fee if it was US, etc? What about if you paid for an instant trade? And Iām assuming no, but does it reflect dividend payments too?
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