Hi all, I’m yet to start investing with freetrade. Have been with T212 for about a year now. I note they say they don’t tax my general investing account and it’s down to me to declare this, how do I do so?
Hey Josh. Above any allowances that you have you will just need to complete a self assessment with HMRC. Its a bit of a pain but simple enough unless you have a complex investment plan.
Best ‘advice’ is generally to use an ISA. Its a convenient tax-wrapper for everyday people.
I’m curious as to how and why Trading 212 did tax you though? Did they just assume that your allowance had been completely used and therefore taxed you at the full rate? I wasn’t aware brokers could do this to pass this onto HRMC on your behalf, but I could easily be wrong.
No broker ‘taxes’ you. It’s up to you to declare it on your self assessment.
For 95% of people this won’t be necessary as the a CGT/dividend allowances are relatively high.
I would always recommend getting an ISA as soon as possible though.
Was not aware of this at all! Crazy. Thanks for the confirmation.
ISA all of the way. Tax rules change too frequently for the lay person to keep up & allowances can always be cut at a moments notice.
Exactly. Get as much in ISA’s whilst you still can…