Tax on shares

[tyler_d]

Hiya

I've bought and sold shares since August of this year. Can I ask if you sell shares within 30 days does this become tax on income or CGT? I was told on a thread about 2 months ago that it was just in America where they differentiate this and that it's CGT here no matter when you sell it. My brother who has been investing for a while has told me that his accountant makes him differentiate his shares sold within 30 days as this is income tax not CGT. Can I ask is this correct?

Thanks

A

 

[Gordon Gekko]

Hiya

I've bought and sold shares since August of this year. Can I ask if you sell shares within 30 days does this become tax on income or CGT? I was told on a thread about 2 months ago that it was just in America where they differentiate this and that it's CGT here no matter when you sell it. My brother who has been investing for a while has told me that his accountant makes him differentiate his shares sold within 30 days as this is income tax not CGT. Can I ask is this correct?

Thanks

A

It’s nonsense unless your brother is actively trading from a tax perspective which is quite a high hurdle.

 

[tyler_d]

So you can buy and sell US stocks within 30 days and It's definitely still CGT?

 

[Gordon Gekko]

So you can buy and sell US stocks within 30 days and It's definitely still CGT?

Basically, yes.

Unless you’re a professional trader with a Bloomberg terminal and you’re doing large volumes of trades.

But if I buy some Apple shares and then sell them after two weeks, it’s CGT treatment.

 

[tyler_d]

Thanks for that. Strange that the accountant would say otherwise. My brother definitely wouldn't be a trader that's for sure.

Is it true that a CG loss can't be carried forward?

 

[Ravima]

If accountant has told you that the CG losses can't be carried forward, on top of what was already advised, then perhaps you need to change accountants

 

[Gordon Gekko]

Thanks for that. Strange that the accountant would say otherwise. My brother definitely wouldn't be a trader that's for sure.

Is it true that a CG loss can't be carried forward?

This person sounds like an accountant in the Bertie Ahern sense of the word, i.e. spent a week working in the accounts department of a hospital 40 years ago.

 

[tyler_d]

Would anyone here know if the bed and breakfast rule applies to just CGT rather than income returns on trading? In other words does B&B rule apply to trading too?