CGT on shares/stocks.
Discussion
Hi all,
Im actually 20% in profit for the first time in 3 years on my shares. When i say 20% im reffering to 20% on top of the whole amount of money ive invested over the past few years into the stocks platform (etoro).
My current and only position is a CFD in XRP, i live in the uk and im confused. So my current position which i opened a couple of months ago is now up like 35% BUT im technically only up 20% of what i invested into the etoro platform overall.
Do i therefore get taxed on the 35% im up on my position if i sold or 20% as thats all ive technically owned over the years???
For the record lets just say the 20% equated to more than the CGT threshold (it doesent so i understand i wont actually be taxed yet anyway im just thinking of potential future profits).
Also where do i lie regarding a CFD position as i dont own the crypto so dont know how that effects CGT and if i have to pay it or not.
Im actually 20% in profit for the first time in 3 years on my shares. When i say 20% im reffering to 20% on top of the whole amount of money ive invested over the past few years into the stocks platform (etoro).
My current and only position is a CFD in XRP, i live in the uk and im confused. So my current position which i opened a couple of months ago is now up like 35% BUT im technically only up 20% of what i invested into the etoro platform overall.
Do i therefore get taxed on the 35% im up on my position if i sold or 20% as thats all ive technically owned over the years???
For the record lets just say the 20% equated to more than the CGT threshold (it doesent so i understand i wont actually be taxed yet anyway im just thinking of potential future profits).
Also where do i lie regarding a CFD position as i dont own the crypto so dont know how that effects CGT and if i have to pay it or not.
Each "investment" is considered on its own for CGT. You can't average across a portfolio.
"One investment" means all of that same thing that you own even if you have bought different quantities of it at different times. If you sell half of your aggregate holding the purchase cost is taken as half of your total purchase cost.
Tesco bought 1/1/20 and Sainsburys bought 1/1/20 = 2 investments held.
Tesco bought 1/1/20 and Tesco bought 30/04/20 = 1 investment held.
If you sell some things at a profit in a year and some things at a loss in the year you can net off the profits and losses.
You need to file a CGT return if your gains exceed £12,300 or if your total proceeds of sale exceed £49,200 or if you are claiming any losses at all. Net unused losses can be carried forward to future years but must be used up before you are entitled to claim another annual allowance.
"One investment" means all of that same thing that you own even if you have bought different quantities of it at different times. If you sell half of your aggregate holding the purchase cost is taken as half of your total purchase cost.
Tesco bought 1/1/20 and Sainsburys bought 1/1/20 = 2 investments held.
Tesco bought 1/1/20 and Tesco bought 30/04/20 = 1 investment held.
If you sell some things at a profit in a year and some things at a loss in the year you can net off the profits and losses.
You need to file a CGT return if your gains exceed £12,300 or if your total proceeds of sale exceed £49,200 or if you are claiming any losses at all. Net unused losses can be carried forward to future years but must be used up before you are entitled to claim another annual allowance.
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