Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 05 Jan 2022 12:32:45 GMT by ilnomis
Hi, I have some questions below that I hope you can assist with: 1. If I've made a profit of £20,000 (in shares trading) in a given tax year and within the same tax year I reinvest say £5,000 (in shares), do I only submit £20,000 or £15,000 as my total profits for the year? 2. the below example is to do with shares trading: Year 1; invested £1,000 and made a loss of £500 but not reported - LOSS of £500, TOTAL ACCOUNT VALUE of £500 (i.e. reinvested) Year 2; invested £1,000 and made a gain of £500 but not reported (as within allowance) - GAIN of £500, TOTAL ACCOUNT VALUE of £2,000 (year 1 plus year 2 values, reinvested) Year 3; not invested new capital but trades from year 1 and 2 are carried over to year 3 (trade value of £2,000) and then make a gain of £15,000. initial investment amount = £2,000 profit = £15,000 Do I report £13,000 as profit? Thank you
Posted Fri, 07 Jan 2022 16:33:02 GMT by HMRC Admin 19

You work out a capital gain or loss each time you make a disposal of shares.

When you dispose of shares you cannot work out your capital gain or loss until you have matched the shares disposed of with shares you acquired. There are special share identification provisions, that establish which shares (of the same class in the same company) have been sold for capital gains purposes.

The gains / losses should be reported in the tax year the shares are disposed of.

You can find more information here:

HS284 Shares and Capital Gains Tax (2021)

CG21500 - Individuals: Losses: assessment

There is no relief for re-investing. 

Thank you.
Posted Sat, 08 Jan 2022 20:15:38 GMT by ilnomis
Hi, With regards to your reply 'The gains / losses should be reported in the tax year the shares are disposed of', I've read on the below HMRC website that 'You need to report your gain by 31 December in the tax year after you made the gain. For example, if you made a gain in the 2020 to 2021 tax year, you need to report it by 31 December 2021.' Please advise which is true. I'd imagine that it could be reported in the next tax year just like self assessment. Thanks
Posted Mon, 10 Jan 2022 12:11:13 GMT by HMRC Admin 17

If you are using the online reporting tool for the disposal of shares rather than your Self Assessment tax return then the date is correct at 31 December 2021.

If reporting through Self Assessment the online filing date of 31 January 2022 is correct. see link:

Capital Gains Tax   . 

Thank you.

You must be signed in to post in this forum.