I have put in the hours and done this myself… Basically I calculated the total shares sold [sell volume x avg SELL price] less the avg buy price [sell volume x avg BUY price] for the same shares in the period. I also added any interest & investment income and voila.
I didn’t know what to do about the FX charges on the buy and sell orders, so I excluded them from the calculation. Can anybody advise here?
Naturally I excluded the Stamp Duty costs. As far as ongoing fund charges are concerned, I think these are deducted on a monthly basis on the holding so at the point of sale these costs have already been netted off.
I am not sure what you mean, are you referring to your section 104 holding? You need to exclude certain things from that. Here are the Share identification rules. (i.e. lump your stuff in three categories):
The FX charges are relevant. Specifically deduct from gains anything you paid Freetrade as part of your costs (and charges included, i.e. the AMC/OCF/TER etc, inside funds are not to be deducted as these are already included in pricing). Be careful to separate the dividend in Accumulation ETF stock from the actual capital gain/loss. This latter is often harder because most Accumulation ETF’s, for example, list themselves as 0% yield … but you still need to find out the exact amount of the dividend. Accumulation unit trust funds (which Freetrade doesn’t do) make this easier as they usually list “Gross distributions” as something separate.
Personally, I don’t have these issues as almost everything is in a SIPP/ISA. All shares outside are pure capital gain/loss (to take advantage of allowances!).
Got tax certificate from II. I did not realise that in addition to dividends, ETF can do retained capital return. This if one just sums all dividends received one may get overinflated number for ETFs.
I currently only use the Freetrade GIA as I hold my ISA elsewhere and I have to complete a SAQ each year. I have had the misfortune of trying to calculate my capital gains through Freetrade for the last couple of years and to say it was laborious and difficult would be being saying the very least.
Currently, Freetrade only provide you with a Spreadsheet detailing the transactions you have processed and you have to work this out yourself. Sometimes it’s easy enough to calculate, if you say bought 10 shares in one order and then sold the 10 later. However, many of these cross multiple buying lots with different prices and often include fractional shares which makes it near enough impossible to be 100% accurate.
Is anyone aware of any easier ways to do this? And are Freetrade looking to provide better reporting for tax purposes? I hold accounts with other providers elsewhere and they provide you with a consolidated tax report each year (even the likes of Moneybox) which you can use to complete your SAQ.
I’d be happy to pay for this service through Freetrade (one-off or through the Plus account) and as it stands, I am reluctant to use Freetrade more than I do because of lack of tax reporting available.
Tax Reporting is on the roadmap but not actively being worked on. I’m afraid it’s going to be a case of you paying an accountant or the like to work this out for you based on your transactions.
Hey Alex! Thanks for opening this discussion. This is another one of those problems that we are aware of, and would love to improve, but unfortunately cannot prioritise above EU and other products/features that the team are working on. I can’t give you a realistic time frame but it is something we will look to make easier in the future. When we do start exploring this I will loop back to this thread and ask you to be involved in testing some designs for us.
Out of curiosity, is there a reason you hold your ISA elsewhere?
Thanks for coming back to me. I have a discretionary account open with Quilter Cheviot which has my ISA - this has served me well so far.
I’m glad you are aware of the issue and I think this would be a must if Freetrade is going attract more serious traders. But I totally understand retail investors are the primary focus right now.
I’d be delighted to test out any new features if you starting working on it.
Re the other comments, I do have an accountant that does my tax return but if I asked them to calculate these gains, my bill would probs double or treble!
I have already invested elsewhere for this years ISA allowance so can only have a GIA with FreeTrade. I am really wanting to start investing with FT but am concerned that it appears, there is no way of generating documentation when needing to file a tax return.
Reading other posts I understand you can get this information via live chat? Is it possible to get this via Email / PDF etc so have the evidence to pass to my accountant when it comes to filing a tax return?
I would be great full for any solutions / advice before starting my investing adventures with FreeTrade.
I’m currently preparing my 2018/19 tax return and came across the same issue. Surely there should be an annual tax summary as part of the April/May statement?
Freetrade were not able to help with my request and has lead to me stop using Freetrade. Its a shame as I liked the platform and I’m even an investor. Such a basic thing that is readily available else where.
They do not even respond to posts on this forum. Rather avoid highlighting there flaws.
Time to go through a years worth of dividends and capital gains manually making records (Splitting payments that’s classed as dividends and bonds), not such an easy task from a phone and making it presentable for the tax return.
This is an issue. I’m a bit reluctant to fully commit with the platform because some key features are missing and exporting trading history in a format what is easy to translate to UK HMRC filing is key.
If you guys are keen to do an invest only focused platform then this is a feature I would actually happy to go ’ pro '. This question came up before… It’s like a no fuss solution
Thanks for opening this discussion. This is another one of those problems that we are aware of, and would love to improve, but unfortunately cannot prioritise above EU and other products/features that the team are working on. I can’t give you a realistic time frame but it is something we will look to make easier in the future. When we do start exploring this I will loop back to this thread and ask you to be involved in testing some designs for us. 