I have a question about the GIA, after I sell a number of shares will it be created a document with all the information like average price of shares, assuming I bought them in multiple transactions, price of sales and, hopefully, capital gain.
I’m asking because I couldn’t find anything yet on the topic, I apologize if I’m wrong, and assuming I max out my allowance on capital gains it will be super convenient having a document with everything I might need for a declaration to the taxman.
Hey! For now, please keep your own records with the data provided in contract notes (which will be in the app) and we’ll try to provide features to help with tax in the future, depending on how much demand there is for this compared to other features & our priorities at the time of course.
Hi @Freetrade_Team1 and welcome!
Thanks for the information and could you please tell me more about the contract notes?
Of course doing it manually is a way but in the future I think it might be a nice to have feature.
I assume a standard quarterly statement / annual tax certificate will be available on-line?
I can show you a preview of our design for contract notes actually
We’ll be working to add the profit from your sale to these contract notes over the next few months too.
And while we’re on the subject, it’s worth mentioning a few points about Capital Gains Tax (CGT):
- In the UK you have an Annual Exempt Allowance which means that if you earn less than a certain return, across all of you investments that you’ve sold, you don’t have to pay CGT
- If your total net capital gain for the year is within the allowance (£11,700 in 2018–2019), it’s tax-free and there’s no need to report it. So you’d have to have a pretty big portfolio &/or a very good year, before you need to worry about paying CGT.
- If you’re using an ISA or SIPP, for your investments (Freetrade are building these right now) you don’t need to worry about paying CGT on those investments
- If you’re not & you exceed the Annual Exempt Allowance, you’re probably going to want to have an accountant to figure out how much you need to pay in CGT
There’s more details about Capital Gains Tax in this blog post -
Sorry about the wait
Yes you will be able to access your quarterly statement in the app we’ve not decided whether to produce annual tax certificates yet, we’ll base that call on how much demand there is from users.
Where in the app can we view the quarterly statements ?