Hi,
I am filling out my personal tax return.
I trade some shares. As an example I traded HSBC stock and had a capital gain unrealised of 1000 GBP and an realised Capital gain of 2000 GBP and a dividend of 500 GBP.
I paid a commision while trading which should be included in calculating capital gains.
I also paid a montly fee to be able to trade on Freetrade of lets say 100 GBP. Can I include the monthly fee in calculating the realised capital gain?
Thanks.
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Replies (8)
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I'm not overly familiar with freetrade (i looked at it recently but stuck with HL as my fees work out lower - i trade infrequently and when i do, i tend to utilise the monthly recurring trade feature to accumulate stocks rather than actively buying and selling).
I believe, however, that you've paid a platform fee for holding your portfolio and not a fee to cover any specific acquisitions or disposals (even though the fee may have led to lower costs on those acquisitions and disposals).
My reading of "paid a monthly fee to be able to trade on Freetrade" is that the fee is not only unrelated to specific gains but to whether any transactions took place at all.
The point that I was alluding to is that all the respondents (reasonably) assume that we are talking about chargeable gains. Although the OP is probably referring loosely to “trade” (and, in contradictory fashion, to capital gains) it is not impossible that the profits are of a trading nature. Unlikely, I grant you, but not impossible.
You think the exclusion from the CG calculation should be under s39 rather than s38? Either way, it's excluded.
I grant you that normally people don't bother with the CG calculation if income tax is in point. So much so that some - I reckon most - accountants don't even realise the assets remain "CGT assets" (to coin a phrase). But OP does - they specifically asked.
In the (overwhelmingly more likely) alternative, the trade point is not relevant to the OP - and only CGT needs to be considered.
(I say coin; I mean steal.)