Tax return

Amateurish question! If we are buying and selling a lot of shares during the year, how do we fill up tax return? Do we need to mention every single share dealing or the total over the year? Also will free trade provide any document for these. Really interested in starting in stock dealing but being put off by too much paperwork for tax return if making several small but frequent dealings. Any help appreciated. Thanks


Have you set up an ISA?

Will you be getting near to your capital gains tax threshold amount in the tax year? Currently imyou only pay cgt on gains over your personal allowance of £11,700.

To avoid all the complication is just get an isa where no cgt is payable in anything held within the isa account and only certain shares (international) would you have to pay additional tax on dividend income.

You need to keep records, yes. But no tax return doesn’t ask for pages and pages of records. But you only need to fill out if the turnover (consideration) is high, or if you make enough profit (gains) for it to matter. In general, you (or your accountant) works out the capital gains declares that and figures out how much tax to pay. Note that there are weird interactions between capital gains, income tax brackets, personal allowance, capital gains allowance, dividend allowance, savings allowance. There are ways to fill out tax return to end up with slightly higher or lower bill. But in practice, one is unlikely to make £11,000+ of capital gains for it to matter.

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Thanks all. I have already been investing in another S&S ISA. Although small amount can’t open a second and waiting for right time to transfer to free trade. In the meantime wanted to use the general account so that is why was interested. I won’t be exceeding the annual add l CGT limit. If you don’t exceed do we still need to give the details of buying and selling or only mention not exceeded in tax return. Thanks