Note* It is best to repurchase any shares sold at the end of a tax year at least 30 days after the initial sale to avoid “bed & breakfasting rules”. Otherwise HMRC will assume the price you repurchased the shares at is your cost price which would defeat the object of this exercise.
great video ! @5:00 the example you gave seems fair to me. A person who is investing his/her money is risking the capital amount and creating value in the underlying asset which helps the overall economy.They should be incentivised by the CGT allowance.
Yeah agreed! but I guess it all depends what the fiscal policy is. Do the government want you spending or investing following the pandemic. Another reason why they might rethink the rules
What he missed, if you reinvest the next day ( or even same day) it has to be in a different company. If you buy back the same stock you have to wait 30 days. If not the the purchase price used for calculations will be the current purchase price. You will not have reset the average purchase price of your stocks or used up your capital gains allowance. If of course if you are transferring into an ISA as part of the process the same day / 30 day rules not apply for that proportion.
In my view an increased CGT liability and reduced CGT allowance is very likely to happen. Interestingly, the 30 day rule may help some investors sell equity assets just before the budget, to realise large pregnant gains now, but then repurchase identical assets within 30 days in nothing happens, to avoid much of the gains if in fact adverse changes do not occur!
I have watched a few of your tax videos now and you explain everything clearly and precisely. I have been in the market this year outside of an ISA so your suggestion of selling off shares to utilise the £12,300 is now on the cards for me. Keep up the helpful videos and thank you for sharing your knowledge with the community 👍
Great stuff. I’m glad you’re finding it useful. Just be careful of bed and breakfasting rules when repurchasing the exact same shares. There is another video about capital gains on my channel that explains what they are and how to get around them. Thanks again for the support 👌
Great to hear! At the moment I'm just holding what i have but if i get a chance i will buy: Ocado under £20 Amazon under $3000 Pinterest under $60 I think we are due a pull back soon so you might see a good opportunity to buy in 🤘
Solid content, love your channel! Quick question please, I made some gains this year, bought on 31st of December 2020 and closed position in February 2021(sold bought shares and changed brokers so withdrawal from eToro and deposit into 212) I have till December 2021 to declare these gains online correct? Thanks!
Well it would depend on the amount of the gain as to whether it needs to be declared at all. I believe the capital gains allowance for 20/21 was £12,300 so if your gain was less than this there is a good chance it doesn't need to be declared at all. Assuming it does need to be declared though you can do it via the self assessment if you already submit one which would be due no later than the 31st Jan 2022 or you can use the real time reporting service on the .gov website which as you said would need to be done by 31 December 2021
Helpful video Adam 👍 Can see a lot of people getting there money put into the trading ISA's instead. I have a plum account in an ISA, make sense to sell this up and close in this tax year and open up the trading 212 isa account for 2021 and put the money in there instead with the rest of my portfolio you think? (Obviously depending when this all happens - i think it will)
yes, I think it makes sense to start planning now. Get everything under the protection of an ISA where possible. If the plum account is a stocks and shares ISA aswell then you'll have to either close it and reopen in trading212 or I'm not sure if you can just move your trading212 portfolio into the plum ISA, whichever is easier. If it's a cash ISA with plum then you can just open the trading212 ISA aswell. I agree, it seems pretty likely we will see some of these hikes
@@trader_uk1446 I also own xk worth of Walmart shares via work that i hold at the minute. xk walmart, xk in degiro, 1k on plum (in an isa) my plans are just selling up and closing the plum potentially before end of this tax year, then opening trading 212 invest isa for next tax year, sell up my degiro and put into trading 212 isa but what should i do with my Walmart shares? About xk capital gains if i sold them now so maybe do that? In terms of the 20k isa allowance does that just allow you to put in 20k for free? Or if i put in 10k and gain 10k i can sell that 10k for free without tax? Still bit confused, might find out a little more tomorrow.
@@sjjc12 I’m going to do a video about ISA’s because it can get a bit confusing. The ISA allowance is 20,000 per tax year so if you invested the 1k in your plum account this tax year then you can still move another 19k into the trading212 ISA before 5th April 21. You would then have another 20k allowance on April 6th 21 to deposit more (assuming the allowance doesn’t change) once the money is in the ISA any gains or dividends you make are tax free with no limit so even if your 20k turns into 1 million you won’t pay tax. As for the Walmart shares, do you know what kind of employee share scheme it was? SIP? SAYE? There are different types which will impact how the capital gains work. If you can find that out I will be able to advise.
@@trader_uk1446 i think a video on ISA's would go down well, especially with it potentially becoming more apparent in due course. I know you can only pay into 1 isa per tax year so thinking use the plum 1 and close before April, open trading 212 isa, move plum money and degiro account into isa. My walmart shares dont 'mature' until June, at which point i have the option to keep or sell. I will keep and then become an official shareholder in Walmart and the shares are managed via computer share. What i dont want to happen is get caught out when i eventually come to sell these and pay a lump of tax, i had planned to stagger and sell some shares in each year to benefit from capital gains saving. I just cant get my head around the 20k isa which i would be under with degiro and plum but comfortably over if i added in my sold walmart shares.
Well as far as I remember you can't actually transfer the allowance but you can transfer the asset tax free. (unless that has now changed) The end result is the same though so yes I believe you can make use of £24,600 per tax year by transferring assets between spouses. Obviously if the asset is held jointly like a rental property may be then there would be no need to transfer.
If you have a substantial amount of gains building up then I would recommend utilizing as much of your £12,300 allowance as possible before 5th April and also consider shifting some of your portfolio into an ISA if possible.
@@trader_uk1446 great advice! Was going to do that, but may cash out my allowance before March 3rd just in case he decided to make changes and have it effective immediately.
Any suggestions on an accountant for those of us that remain baffled? Too much buying and selling cryptos... still not certain if it's the overall profit or individual sales.
I can’t see them changing things until 2022 or 2023. It would be announced with notice. Probably announced in the March budget and then implemented from April 5th so you would have time to plan.
If these new rules are announced in the march 2021 budget - I would still have enough time before the beginning of April to act on it for this tax year? So I shouldn’t do any evasive action just yet?
Note* It is best to repurchase any shares sold at the end of a tax year at least 30 days after the initial sale to avoid “bed & breakfasting rules”. Otherwise HMRC will assume the price you repurchased the shares at is your cost price which would defeat the object of this exercise.
Same rule affect cryptocurrencies??
excellent educational video, as always
This is really clear information and advice, thank you!
great video ! @5:00 the example you gave seems fair to me. A person who is investing his/her money is risking the capital amount and creating value in the underlying asset which helps the overall economy.They should be incentivised by the CGT allowance.
Yeah agreed! but I guess it all depends what the fiscal policy is. Do the government want you spending or investing following the pandemic. Another reason why they might rethink the rules
Great info, I've been doing pretty much what you've mentioned around taking advantage of the 12K allowance and moving to an ISA. Liked and subscribed!
Yeahh cant say i’m surprised, use an isa folksss
Me neither. As much as I enjoy making money tax free I never thought it would last forever 👍
Unfortunately I cant, my ISA is maxed out and leaving it in pounds to de-flate doesn't sit well with me 😀
What he missed, if you reinvest the next day ( or even same day) it has to be in a different company.
If you buy back the same stock you have to wait 30 days. If not the the purchase price used for calculations will be the current purchase price. You will not have reset the average purchase price of your stocks or used up your capital gains allowance.
If of course if you are transferring into an ISA as part of the process the same day / 30 day rules not apply for that proportion.
In my view an increased CGT liability and reduced CGT allowance is very likely to happen. Interestingly, the 30 day rule may help some investors sell equity assets just before the budget, to realise large pregnant gains now, but then repurchase identical assets within 30 days in nothing happens, to avoid much of the gains if in fact adverse changes do not occur!
Yes, never thought of that. Using bed and breakfasting rules to your advantage!
It makes sense to realise some/all gains even paying 20% in taxes instead of 40% for next cycle
I have watched a few of your tax videos now and you explain everything clearly and precisely. I have been in the market this year outside of an ISA so your suggestion of selling off shares to utilise the £12,300 is now on the cards for me. Keep up the helpful videos and thank you for sharing your knowledge with the community 👍
Great stuff. I’m glad you’re finding it useful. Just be careful of bed and breakfasting rules when repurchasing the exact same shares. There is another video about capital gains on my channel that explains what they are and how to get around them.
Thanks again for the support 👌
Make sure you make use this year, they may well lower it to 3k next year.
Thank you always helpful video . I learn so much stuff from your video. Which company are you buying next :)
Great to hear! At the moment I'm just holding what i have but if i get a chance i will buy:
Ocado under £20
Amazon under $3000
Pinterest under $60
I think we are due a pull back soon so you might see a good opportunity to buy in 🤘
Solid content, love your channel!
Quick question please, I made some gains this year, bought on 31st of December 2020 and closed position in February 2021(sold bought shares and changed brokers so withdrawal from eToro and deposit into 212) I have till December 2021 to declare these gains online correct? Thanks!
Well it would depend on the amount of the gain as to whether it needs to be declared at all. I believe the capital gains allowance for 20/21 was £12,300 so if your gain was less than this there is a good chance it doesn't need to be declared at all. Assuming it does need to be declared though you can do it via the self assessment if you already submit one which would be due no later than the 31st Jan 2022 or you can use the real time reporting service on the .gov website which as you said would need to be done by 31 December 2021
Helpful video Adam 👍 Can see a lot of people getting there money put into the trading ISA's instead. I have a plum account in an ISA, make sense to sell this up and close in this tax year and open up the trading 212 isa account for 2021 and put the money in there instead with the rest of my portfolio you think? (Obviously depending when this all happens - i think it will)
yes, I think it makes sense to start planning now. Get everything under the protection of an ISA where possible. If the plum account is a stocks and shares ISA aswell then you'll have to either close it and reopen in trading212 or I'm not sure if you can just move your trading212 portfolio into the plum ISA, whichever is easier. If it's a cash ISA with plum then you can just open the trading212 ISA aswell. I agree, it seems pretty likely we will see some of these hikes
@@trader_uk1446 I also own xk worth of Walmart shares via work that i hold at the minute. xk walmart, xk in degiro, 1k on plum (in an isa) my plans are just selling up and closing the plum potentially before end of this tax year, then opening trading 212 invest isa for next tax year, sell up my degiro and put into trading 212 isa but what should i do with my Walmart shares? About xk capital gains if i sold them now so maybe do that? In terms of the 20k isa allowance does that just allow you to put in 20k for free? Or if i put in 10k and gain 10k i can sell that 10k for free without tax? Still bit confused, might find out a little more tomorrow.
@@sjjc12 I’m going to do a video about ISA’s because it can get a bit confusing. The ISA allowance is 20,000 per tax year so if you invested the 1k in your plum account this tax year then you can still move another 19k into the trading212 ISA before 5th April 21. You would then have another 20k allowance on April 6th 21 to deposit more (assuming the allowance doesn’t change) once the money is in the ISA any gains or dividends you make are tax free with no limit so even if your 20k turns into 1 million you won’t pay tax. As for the Walmart shares, do you know what kind of employee share scheme it was? SIP? SAYE? There are different types which will impact how the capital gains work. If you can find that out I will be able to advise.
@@trader_uk1446 i think a video on ISA's would go down well, especially with it potentially becoming more apparent in due course. I know you can only pay into 1 isa per tax year so thinking use the plum 1 and close before April, open trading 212 isa, move plum money and degiro account into isa. My walmart shares dont 'mature' until June, at which point i have the option to keep or sell. I will keep and then become an official shareholder in Walmart and the shares are managed via computer share. What i dont want to happen is get caught out when i eventually come to sell these and pay a lump of tax, i had planned to stagger and sell some shares in each year to benefit from capital gains saving. I just cant get my head around the 20k isa which i would be under with degiro and plum but comfortably over if i added in my sold walmart shares.
Another great episode! Worth Mentioning you can double your Capital gains allowance if your spouse does not use theirs?
Well as far as I remember you can't actually transfer the allowance but you can transfer the asset tax free. (unless that has now changed) The end result is the same though so yes I believe you can make use of £24,600 per tax year by transferring assets between spouses. Obviously if the asset is held jointly like a rental property may be then there would be no need to transfer.
Would you recommend selling shares now ahead of budget announcement?
If you have a substantial amount of gains building up then I would recommend utilizing as much of your £12,300 allowance as possible before 5th April and also consider shifting some of your portfolio into an ISA if possible.
@@trader_uk1446 great advice! Was going to do that, but may cash out my allowance before March 3rd just in case he decided to make changes and have it effective immediately.
Any suggestions on an accountant for those of us that remain baffled? Too much buying and selling cryptos... still not certain if it's the overall profit or individual sales.
You can email me at trader_uk@outlook.com
I second that
As much as I try to understand all that it still baffles me
Total joke, people will be leaving the country if they raise it high.
Is there anymore up to date information on this? have we heard anything more?
No updates that I’m aware of. I think their hands are full at the moment but I will post an update if I see anything 👍
Could this be effective from the moment they announce it or for next tax year cycle 21-22?
I can’t see them changing things until 2022 or 2023. It would be announced with notice. Probably announced in the March budget and then implemented from April 5th so you would have time to plan.
Hi, do you have to report if gains are less that £12,300? Can you exclude altogether
If your gains are less than £12,300 then you don’t need to declare them.
If these new rules are announced in the march 2021 budget - I would still have enough time before the beginning of April to act on it for this tax year? So I shouldn’t do any evasive action just yet?
Exactly. You would still have time to take action even if it was announced in the spring budget.