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Posted Sun, 14 Nov 2021 21:03:26 GMT by BOBU L
Hi, I am managing my own investment portfolio, with long/short frequent trading as well as long hold of position. I will registered as sole trader for the tax purpose. The long/short frequent tradings are likely be classified as income, and my long hold positions may be hold for months / years. As they are inside the same investment portfolio, can I net all income/loss and captial gain/loss of all holdings/ trade and report as income for tax purpose? As they are inside the same profolio the statment from the broker has everything together and I am not likely can seperate them out. If I must need to seperate them out, does it mean I cannot use the captial loss to offset my income? Thank you
Posted Tue, 16 Nov 2021 10:56:24 GMT by HMRC Admin 17

Hi,
 
Any trading income would be reported as such through self employment.

Any personal capital gains would need to be reported on the capital gains section.

You cannot put everything together based on the fact they are held in the same portfolio.

It is unlikely any capital losses would therefore be allowable to offset against other income. 

Thank you.
Posted Tue, 16 Nov 2021 13:48:31 GMT by BOBU L
Hi, Thanks for reply. I am a bit confuse the term "personal captial gain", I register myself as self employment as my "job" is to manage the investment portfolio which has both short term and long term trades. Shouldn't all the profit and loss generated from that portfolio are part of my income? That should be similar to setup a legal entity to hold all the investment under the entity name, in case if I hold all these investment in a legal entity then can I treat all profit/loss together as the company's profit/loss? Thanks
Posted Wed, 17 Nov 2021 15:03:45 GMT by HMRC Admin 17

Hi,
 
If all the investments held within the portfolio are for business purposes and trading then this would all be entered as self employment income.

If there are any there for your own personal gain then this would be capital gains. 

Thank you.

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