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Estimated Earnings

Is estimated earnings taxable from this schedule?

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Hi

I have a schedule named 'Valuation of securities as at 05 Apr2019' which is showing Estimated income from securities, ISA, Investment Account, Bargain for later settlements. Are these estimated earnings from this schedule are taxable? If not then whats the purpose of this schedule. If yes then why its an estimated? 

 

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By SteLacca
23rd Dec 2019 08:39

Is it not a projection for 2019/20?

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By Accaols
23rd Dec 2019 09:33

nope its dated 05 Apr 2019

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By Wanderer
23rd Dec 2019 09:44

Still probably a prediction showing estimated earnings over the next 12 months on those securities held at 05/04/2019.

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By SteLacca
23rd Dec 2019 09:55

Accaols wrote:

nope its dated 05 Apr 2019

Hence the use of the word "projection".

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By chicken farmer
23rd Dec 2019 08:58

Why don't you ask the person or organisation who prepared the schedule?

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By johnhemming
23rd Dec 2019 10:01

One has to assume that this is a forecast for the year 19/20. On that basis whatever money is received from outside a tax wrapper (the ISA being a tax wrapper and not taxable) is taxable.

However, we don't as yet know what the figures are and in any event that would apply for the tax return for 19/20 which cannot start being prepared until after the end of the tax year.

What happens with stock market investments is that people try to estimate what the profit of a company is and what dividends it is likely to pay in advance. For some companies that is quite a reliable process, but for other ones it can go wrong (cf Carillion, Patisserie Valerie etc). It is, however, useful for the holders of the stocks to have some idea as to what money they will get during the year.

What you need to ask the broker to do (I presume this is prepared by a stock broker) is to get the income schedule for the last tax year. Most stockbrokers/platforms can do this. If you tell us who the broker is I might be able to tell you if this is possible.

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By Accaols
23rd Dec 2019 10:22

Thanks John for detailed reply. The name of the broker is Smith & Williamson.

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By bernard michael
23rd Dec 2019 10:38

Accaols wrote:

Thanks John for detailed reply. The name of the broker is Smith & Williamson.

The accountants? I didn't know they were into that game

I get these projection once a quarter from my stock broker. They are purely guestimates (projections) of what the income will be. You are only taxed on the actual income received excluding any ISAs and other non taxable items

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By johnhemming
23rd Dec 2019 11:48

They should be able to do this, but I could not find details on their website and I don't know for certain that they can to this. You will have to ask them about this.

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By Matrix
23rd Dec 2019 10:34

Is this an ISA? I am not sure if you have listed the funds or the name is an ISA. Please clarify.

I ignore all my clients’ ISAs and ask for a tax pack for everything else. I only use figures I understand so, as others have said, go back to the fund manager.

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By Accaols
23rd Dec 2019 10:45

This is in taxpack i got and its showing estimated earnings of securities, ISA etc as i have mentioned. Yup i will check with FM

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