tax on shares

[duf]

Dear All,

I am writing this thread seeking some help as I am confused which category of tax is liable this income and expense as individual investor through UK retail broker platform.


1) If you receive income from shares traded in major listed companies (LSE, NYSE, NASDAQ), which tax you are liable to ? capital gain tax, or income tax ? A trade meaning by buy/selling few times a week or month (if market is suitable for this method). Obviously, I know, if you receive dividends from company invested, then you are subject to dividend tax but I don't know which tax you are liable to if you trade them.


2) For sole purpose, if you borrow to invest (gearing), can you offset loan payment (gearing) against any profit on investment ?


3) Can you offset losses against profit in investment ? If so, how many years you can go back to claim your losses ?



thanks in advance
Duf

[robbob]

Ref 1 - prety much always capital gains tax

Ref 2 - no - presuming the answer to 1 is capital gains

Ref 3 I am presumig again capital gains tax - answer is yes in that losses on disposal can be set against profit on disposal - there is no ability to carry back losses and you really should notify HMRC of losses within timeframes to ensure they are available to use.

Note depending on circumstances any of the above answers could be differnt but its normally as above for most bods.

i am not sure why you are really confused here as i would be surprised if there was any advise in writing that really contradicts any of the above points.

Note there is a difference between buying shares and spreadbetting - so spreadbetting is somethig compeltely different and probably most likely to be completely tax free presuming you are simply deemed to be "gambling" with such activities.

[duf]

robbob, thank you so much for your help.

Ref 1 - prety much always capital gains tax.

Understood ! Do you have to include the amount in self assessment if you are bellow annual capital gain allowance - e;g £12,300 (20/21) ?

Ref 2 - no - presuming the answer to 1 is capital gains.

Yes is CGT in question (as you suggested), so to this question. What about if you invested through LTD company ? and LTD borrow to invest (gearing), can LTD gearing be offseted ?

Ref 3 I am presumig again capital gains tax - answer is yes in that losses on disposal can be set against profit on disposal - there is no ability to carry back losses and you really should notify HMRC of losses within timeframes to ensure they are available to use.

So you are saying that you are not eligible to claim current past years losses if you had any ?

i am not sure why you are really confused here as i would be surprised if there was any advise in writing that really contradicts any of the above points.

Advice in writing was never received. This is first help seeking in regards to this matter.

Note there is a difference between buying shares and spreadbetting - so spreadbetting is somethig compeltely different and probably most likely to be completely tax free presuming you are simply deemed to be "gambling" with such activities.

As I pointed above in my first thread, buying shares of major companies that are listed in LSE, NYSE, NASDAQ which are not consider as spreadbetting. Just simple individual investor buying/selling shares through UK broker.




Many Thanks
Duf