Hi All....tax on trading question?

[TeaTime]

Guys, Im sure this question must have been covered somewhere on here but I can find any answers, appreciate any responses, so here goes:

Im retired and the state pension is my only income
I trade the US market via an IB A/c, daytrade, swing or even hold for longer periods

I believe you can earn upto £10k tax free, anything above that is taxable , does that include trading ? , Im not interested in spead betting , having been self employed and perfered self assessment rather than use an accountant, due to past experiences, I ceased working due to illness some 5 + years ago

Cheers john

 

[f2calv]

So you prefer self-assessment but yet you don't know anything about yearly CGT limits? Maybe you should actually be using an accountant

https://www.gov.uk/capital-gains-tax/allowances

As far as "not interested in spreadbetting" goes, if you interested in saving money [on tax, obviously not on commissions] maybe its worth a little more investigation before totally writing it off?

 

[timsk]

. . . I believe you can earn upto £10k tax free, anything above that is taxable , does that include trading ? . . .

Hi John,
Yes, the tax question is one that's raised with consistent regularity. In fact, quite recently in this thread.

I suspect f2calv is correct in suggesting that your main concern - and possibly only concern - will be paying Capital Gains Tax at whatever the current rate is. I checked this out when I day traded U.S. equities back in 2008 and that was certainly the case then - although I wasn't retired. You can see the result of my enquiries here. I know nothing about tax, so I've no idea whether or not your retired status has any bearing on the situation. However, your local HMRC office will - and I recommend you contact them and get an answer from the horses mouth so to speak. It's also worth asking your account manager at IB the same question as, almost certainly, they have a fair few U.K. clients in a similar position to you who will have asked this question in the past.

HTH,
Tim.

 

[TeaTime]

So you prefer self-assessment but yet you don't know anything about yearly CGT limits? Maybe you should actually be using an accountant

https://www.gov.uk/capital-gains-tax/allowances

As far as "not interested in spreadbetting" goes, if you interested in saving money [on tax, obviously not on commissions] maybe its worth a little more investigation before totally writing it off?

Thank you f2calv,
I know what the CGT is and I havent exceed them as yet, I will look into spread betting...thanks !

 

[TeaTime]

Hi John,
Yes, the tax question is one that's raised with consistent regularity. In fact, quite recently in this thread.

I suspect f2calv is correct in suggesting that your main concern - and possibly only concern - will be paying Capital Gains Tax at whatever the current rate is. I checked this out when I day traded U.S. equities back in 2008 and that was certainly the case then - although I wasn't retired. You can see the result of my enquiries here. I know nothing about tax, so I've no idea whether or not your retired status has any bearing on the situation. However, your local HMRC office will - and I recommend you contact them and get an answer from the horses mouth so to speak. It's also worth asking your account manager at IB the same question as, almost certainly, they have a fair few U.K. clients in a similar position to you who will have asked this question in the past.

HTH,
Tim.

Thank you timsk, will contact the tax office for more info
appreciate your help

 

[malaguti]

Guys, Im sure this question must have been covered somewhere on here but I can find any answers, appreciate any responses, so here goes:

Im retired and the state pension is my only income
I trade the US market via an IB A/c, daytrade, swing or even hold for longer periods

I believe you can earn upto £10k tax free, anything above that is taxable , does that include trading ? , Im not interested in spead betting , having been self employed and perfered self assessment rather than use an accountant, due to past experiences, I ceased working due to illness some 5 + years ago

Cheers john

you can earn up to 11k in capital gains, then after that you'll be liable at the standard rate depending on your income. if yours is just a pension you'll be a basic rate taxpayer.
so if you earnt £15k in capital gains, 11.1 is tax free and the remaining 3.9 would taxed at 20%. this needs to go into your self assessment (the CGT element).
personally I'd be considering a SIPP or an ISA if I were you.
look into these for your longer term/swing trades. tax exempt and don't need to be declared on a self assessment.
good luck

 

[TeaTime]

you can earn up to 11k in capital gains, then after that you'll be liable at the standard rate depending on your income. if yours is just a pension you'll be a basic rate taxpayer.
so if you earnt £15k in capital gains, 11.1 is tax free and the remaining 3.9 would taxed at 20%. this needs to go into your self assessment (the CGT element).
personally I'd be considering a SIPP or an ISA if I were you.
look into these for your longer term/swing trades. tax exempt and don't need to be declared on a self assessment.
good luck

Thank you Sir, much appreciate your input..

 

[certax]

So you prefer self-assessment but yet you don't know anything about yearly CGT limits? Maybe you should actually be using an accountant

https://www.certaxlondon.co.uk/capital-gains-tax-allowance-rate-2017-to-2018/

As far as "not interested in spreadbetting" goes, if you interested in saving money [on tax, obviously not on commissions] maybe its worth a little more investigation before totally writing it off?

I check it for my capital gain tax can you tell me how i can check for 2018, i mean any calculator or any thing?