UK Tax on Investing Explained & How To Avoid Paying Tax on Shares

[@SashaYanshin]

While Trading 212 remains closed to new accounts, you can open a Stocks & Shares ISA with Freetrade. GET A FREE SHARE WORTH UP TO £200 WITH FREETRADE magic.freetrade.io/join/sasha-yanshin You need to sign up and make any deposit to get the free share. It costs £3 per month and has 0.45% FX fees but allows investing in individual stocks and a broad range of other ETFs unlike the slightly cheaper Vanguard option.

[@lawrencer25]

Thank you for getting back to me . So helpful and put my mind at rest 👍👍👍👍👍

[@patricksharkey7764]

Thanks Sasha- more quality information well delivered. You are not a financial advisor but your advice and knowledge is better than any ‘official financial advisor’ I have ever heard. Excellent and relevant content.

[@SashaYanshin]

Thank you so much Patrick!

[@algreen1]

Thanks, really great job delivering clear information quickly

[@SashaYanshin]

Thank you!

[@rayyaanrash2187]

Great video for us younger investors 👍

[@SashaYanshin]

Thank you!

[@HusSaiyan]

I was looking for something like this, thanks man.

[@SashaYanshin]

Tried to condense as much as I could in there :)

[@pacifica9718]

Sasha, you put an amazing amount of background work into your content. Sadly, I opened my Free trade account before I found your channel - so I can't furnish you with a free share. But you do get my thanks and my undivided attention from now on! 😀

[@SashaYanshin]

Haha! Thank you for the kind words! Maybe you'll check out one of the other options like eToro through one of my links in the future 😜

[@kasunbuddhikaperera6152]

This was a really good video. Keep up the good work!

[@SashaYanshin]

Thanks. You must have watched it on x5 speed!

[@05kendalls]

It's almost as though you are reading my mind, every time I have a question about trading etc, you seem to have a video explaining it the very next day. I am looking forward to your info on the self-assessment etc.

[@SashaYanshin]

Yep - all coming in the next few days! :)

[@deanmccarthy7246]

Great video! Really helpful man.

[@SashaYanshin]

Thanks Dean!

[@zeevradolf7613]

Love the info. So easy to understand.

[@SashaYanshin]

Thanks!

[@seraho]

Thank you Sasha! I'm looking into opening a GIA with Etoro as an alternative to Trading 212 but wasn't sure how much tax I would incur outside an ISA. So, this is a really helpful breakdown👍🏾

[@SashaYanshin]

Pleasure. Make sure you use my affiliate link for the unique benefit of getting 0 shares worth up to $0 when you open it! 😂

[@gringorecifence]

Great video pal, very useful! What about selling shares at a loss on the investing trading 212? can those losses get deducted from profits you may need to pay tax on? (so long as we respect the bed and breakfast rule..) I know that this cannot be done on the ISA account but for the normal trading account? cheers

[@SashaYanshin]

Yep - losses made during the course of a financial year can offset other capital gains when you calculate your total OR if you made a net loss, you can use that loss in future years to offset any capital gains due (for up to 4 years). :)

[@Official_Synth_Fury]

Hi Sasha, quick question, I’ve brought stocks on Trading 212 and I just wanted to sit on them for a long time (probably decades) would I have to fill any tax returns/pay any tax in this time? And what would I have to do when I eventually cash out all of my shares? Thanks in advance for your time, Ian

[@bobross541]

Thanks Sasha, really helpful video.

[@pablosotto7]

HI, how to pay taxes on stock market profits in London, I have been investing with ETORO for more than two years. Thanks

[@MrTJApple]

Thank you so much this was so helpful for me

[@SashaYanshin]

👍

[@lawrencer25]

Another fantastic video . Thank you very much 👍👍👍🥂🥳

[@SashaYanshin]

Thanks Lawrence!

[@petarsamkov9563]

Hi @Sasha Yanshin brilliant video, I’ve got a quick one . To the best of your knowledge is there a way we can do tax loss harvesting here in the Uk ( as in US) . Thanks in advance

[@mohammednaheem6732]

Great video. I understand there is no uk capital gains tax on shares in a UK ISA or on dividends except if you invest in USA companies which deduct a withholding tax. Are you liable for any capital gains tax on the usa stocks in the USA on USA stocks held in UK Isa? I.e. do we need to file an amercian tax return on the USA gains in a UK Isa?

[@peterdowney1492]

Thanks for that, Sasha; very informative. I have one question: Do you pay by shares or portfolio? So, if I have a portfolio of shares that as a portfolio is in profit but some of the shares that have lost money, what then? I am, say, £30,000 in profit. I am losing in, say, Cardano. I sell my £15000 Cardano. Am I taxed, regardless, as my portfolio is in profit, or not? Cheers in advance.

[@xXxDwarfYxXx]

Crypto isn't currently taxed thou? So i dont think do

[@alexwong88]

Great video! Any thoughts about setting up a company for investing in UK shares, if good for tax savings? I read it somewhere suggesting this idea

[@mihailpricop9363]

Thanks for this. Question: if i sell something and do £100 or £200 ish profit in a year do i need to report anything to anyone even if i will not pay taxes? Or just ignore the taxes worries completely? Thank you. You do a great job. BTW , anyone can answer with a concrete answer

[@willlsmith8063]

Hi Sasha love the channel..........question.......if I have £20k in Trading 212 in a GIA account........they have a facility to swap to an ISA would this cause me any tax issues if I do a real in time switch?........thanks

[@turnitaround7344]

Hi Sasha, what does Tax reporting UK mean, when it's in a vanguard S&S ISA index fund? Why do we need to report if it's in the ISA? Thanks, great vids.

[@t_intelligence7854]

Hi…thank you for that very informativ video. I have one question after it left please as I just moved to England. What’s the advantage of an stocks and shares ISA company to just investing and use the 12.3K capital gains tax free amount? Thank you for your reply in advance. Thomas

[@playingsongs]

Hi Sasha thank you for all useful info in this video. I have a question about shares. What if I invest 1000 in lets say Amazon then make profit of 200, so I will sell for 1200 in total and then straight away invest in lets say tesla then wait for price increase and sell again with profit. When is tax applicable to this? Is it when I sell each time, or when I withdraw money from the trading platform?

[@mousi]

Bed & Breakfasting questions: 1. What if I sell shares on a normal investing account and immediately buy them back in an ISA account? I suppose I'll have to pay tax for selling in the normal account 2. What if I buy first and then sell, does that make any difference? 3. I recently sold and immediately bought shares in normal accounts (wasn't aware of the rule). Do I even report that sale or ignore it completely?

[@SashaYanshin]

Hey Kostas, 1. If you move them inside the tax wrapper, then yes - there will be a disposal as I understand it. 2. Not sure how you mean. If you own 10 shares of Company X, then buy 5 shares and sell 5 shares, the 5 sold shares will classify for capital gains. 3. You won't be reporting individual transactions - you'll have to do the maths yourself but as it was a short window, the calculation will assume that no disposal took place. Of course this is just all my personal opinion and I am just some random guy on the internet so do your own research.

[@mousi]

@@SashaYanshin Right, makes sense, thank you. And great video btw, really helpful. For #2 I meant, let's say I already own 10 shares of AAPL, I go to another account (possibly) today and buy another 10, then tomorrow or in 1 week I sell the original 10. I suppose that's the same thing though

[@SashaYanshin]

@@mousi Yep. And following a change some time ago, there is no concept of matching shares - so you don't get to choose which of the shares it is that you sell - it's all worked out on averages but I will be covering that in a lot of detail soon :)

[@jameshigson9630]

Thanks for putting this vid up, so do i have to work out and pay tax if i sell a stock, keep the money with my broker and buy straight back into a different company within 30 days or only when i actually withdraw the money from my broker account into my bank account? 🤔

[@johnallingham9357]

Thank you Sasha,. This is really helpful! I would like to ask if from your video: sell 10 units cost £1,000 in say June 2020 & sell 10 units cost £1,500 in Aug 2021. How work out tax gain for year 2021-22? Also, is that total gain inc tax year 2020-21?

[@jdm1hunter]

Thanks for the super helpful video, just started a vanguard ss isa and dabbling with Freetrade buying company shares. Question ; Example, i own multiple shares in 2 companies, so one I make 15k profit (invest 10, sell at 25), the other a 5k loss (invest 10, sell at 5). ‘Take home’ my pocket sees 10k profit. Do I still pay Capital gains on the 2.7k above the 12.3k on the 1st one, even though overall during year, my ‘profit’ was really only 10k. (Above is wishful numbers, but I just want to understand the concept). Thanks

[@aaronheno958]

Hi sasha ! First and foremost keep up the good work man. I really enjoy your channel and approach to simplifying and communicating us all ! My question is. I'm a uk citizen that has been living and investing in the uk for this past tax year. I now work remotely from canada (for a UK company) and will be for the foreseeable. My residency tax status will change for this coming financial year due to my remote living/working arrangements. What does this mean to my shares held in my trading 212 account and can I keep investing or opening up a new ISA ? I've read through the t&c's on trading 212 and I'm a little lost. Really appreciate any feedback 👍

[@SashaYanshin]

That does sound like a difficult one. I think the second question is the easy one - if you are not technically resident in the UK, then I think you are not meant to be able to open up an ISA account. Of course I don't know your circumstances so only you know whether you are or are not resident for tax purposes. On the former question - I looked around and it looks like you can KEEP the ISA but you can't contribute any more to it if you have one already open - details here: helpcentre.trading212.com/hc/en-us/articles/360009002418-What-happens-to-my-ISA-if-I-move-abroad However you CAN continue using the regular Invest account according to the same resource above...

[@aaronheno958]

@@SashaYanshin thanks sasha ! What are the differences between the ISA and invest account exactly? I guess it may just mean I will have to open up a canadian/US based trading platform account and trade through that for this coming tax year 🤔. Majority of my primary shares are long term A.I investments but if I was to trade this year through my trading 212 account with money already in there that should be covered within my UK capital gains allowance for the year ? Thanks in advance

[@netrofear01]

Sasha, what do you think of the new apple credit card, I think its up there with the AMX cashback cards video you done... love to hear your thoughts

[@SashaYanshin]

Only available in the US - if it ever makes it over the pond, the features will be much much less cool because the interchange is so much less here compared to the US.

[@gavinbroughton]

Brilliant, thanks. Still slightly confused on B&Bing though. I think its a case where showing 3 different scenarios based on the amounts and dates will explain it better than saying the rules. So "if you do this, then that happens" instead of rule 1 2 3

[@SashaYanshin]

I covered it in a bit more detail in the follow up video on how to calculate capital gains. The difficulty is that I have to manage the length of the video and people's interest so trying to find the right line where I explain things enough but don't go too long so that people lose interest! :) Hope it was good enough though in this one.

[@goldwing4264]

Sasha, tell me if I’m thinking right here please. I have a 1 and a half year old ISA on trading 212 and my old mum left me a few quid, in an inheritance that has never been touched since it was parked in an NS&I premium bounds account, but I have added about about 20k to it over the years thinking that would be a nice little surprise for my daughter when my time comes. Over the next few years I intend to keep topping up the ISA with around 10 to 12 grand a year from my full-time work. What I was thinking was, as I might not be able to top the ISA out every year maybe I’ll rob the 20k back out of the NS&I account and put it into an invest account buying ETF’s (nice and safe) Then hopefully using any profits from invest account, under £12,300 to top up the ISA each 6th April, in a tax-free manner. Should I be correct in thinking this is a tax-free method to help build the ISA? What’s your thoughts Thanks in advance.

[@anthonyskilton8634]

Excellent, thank you.

[@SashaYanshin]

👍

[@jessecuster4662]

So I I receive dividends for example £50 from National grid in my 212 stocks and shares ISA, and then I withdraw that £50 into my current account. I don’t have to pay tax ?

[@ArturK1M]

The only think I don't understand, starting from basic tax payer is; If I earn 40K and earn 12.300 cap, gain, That still doesn't take me to higher tax rate? Even though I got into over 50k bracket? Basically my tax for capital gains would start after £52.300 and already be in the higher bracket or I still would be starting at 40k (already used free 12.300) and anything more would be at basic rate? I hope I'm not confusing.

[@stephenhaynes603]

Hi thanks for the video ! I have a question about tax on a fixed rate bond , i believe im paying tax when the bond matures , im on the BACS payment with work is this tax auto deducted ? or do i need to declare to HMRC ? bit confused as im hearing different opinions on this. 🤨

[@exceptionalbuildingservices]

I'm self-employed in the construction industry so every year I have to do my tax return and I'm getting some of the taxes back from the HMRC because of my expenses and personal allowance. I'm wondering if I can sell my losing shares before the tax year ends and buy them back a week later for example, and fill it as a capital loss? Is there such a thinking? For example this year is terrible for some stocks and I'm down 60-70% on some of them. I want to stay invested and average down, but on the other hand I had a great year in the construction and my deductions went substantially up. I want to know if at the end of the year I can sell some shares on a loss and put them in my tax return as a loss.

[@shiraiyoshi384]

Thank you Sasha! This is really helpful! I would like to ask if I bought the stocks in UK via a trading platform but will move to Hong Kong potentially next year - Do I still need to pay the tax if i sell my stock in Hong Kong?

[@SashaYanshin]

I, of course, can't give you specific advice on this, but the general rule of thumb is that you pay tax based on where you are resident and in accordance with the tax laws of the place you are resident although some countries like the US can tax their citizens globally. However - you'll need to determine if you can continue using whichever investing app it is that you are using if you leave the UK permanently as well...

[@tonymansell4691]

Hi. How do you work out how much gain/ tax you have if you have been paying monthly for the last 20 years and now want to start selling so it can be put into an ISA without reaching that tax threshold ?

[@williamjames1537]

I’m self employed & have an S&S ISA, first tax year is coming up after I started investing. Do I still need to declare my investments on my self assessment?

[@SashaYanshin]

Not if they are all inside the ISA. :)

[@williamjames1537]

@@SashaYanshin Perfect, cheers for the advice

[@mmherrebrugh]

Thanks for the video Sasha. If all of your investments in 1 index fund are sold and placed into another index fund, would that then still be considered bed and breakfast?

[@SashaYanshin]

No, because you are selling then rebuying different assets - otherwise anyone reinvesting money would never have to pay Capital Gains :)

[@mmherrebrugh]

Thanks for the reply man. Sort of expected the answer but remained hopeful for a different reply. 😅

[@F1MichaelGT]

Great video! The US divided withholding tax is disregarded completely with some US stocks if investors do their research

[@SashaYanshin]

How do you mean? Are you saying that people don't pay enough attention to it OR that there are ways around it? If so, are you talking about synthetic ETFs, etc? Because I've talked about that before...

[@F1MichaelGT]

​@@SashaYanshin I've never seen anyone do a youtube video on it. MLP's label their dividend as the return of capital and (on at least trading212 from experience) you get 100% of the dollars converted to pounds. EPD, NEP, BPYU. High yielders, No tax.

[@acoustonaut780]

Thanks for the video. It would be great to have a video on calculating CGT on a holding that you have dollar cost averaged into and also taken profits from along the way. Not found anywhere that explains this but is such a common situation as it reflects best practice.

[@SashaYanshin]

That is exactly the sort of thing I will be covering in a video coming out in the next few days!

[@acoustonaut780]

@@SashaYanshin amazing!! Truly useful channel. Lots of value here.

[@cottrellm100]

I subscribed to your channel a few weeks ago, excellent knowledge. If I grow my S&S ISA, it being a tax wrapper. Can I then drawdown my dividend income, hypothetically, whatever it generates on 'growth dividends shares' I've invested in without paying tax on that money? Thank you

[@SashaYanshin]

Correct. It does limit your ability to reinvest and grow the portfolio but nothing stopping you drawing the money out and doing whatever you want with it - no tax will be due (other than maybe US Withholding tax if the dividends are coming from there)

[@cottrellm100]

@@SashaYanshin Thanks Sasha. I was looking at just reinvesting all the dividends for 10 years plus looking at share growth {basically compounding} and then at approximately the 10 year point just harvest the dividends (yearly) leaving the capital effectively.

[@AC-eh9op]

@@SashaYanshin could you expand on it limiting you being able to reinvest your dividends? I’d have a similar plan.

[@sashayanshinstory]

@@AC-eh9op I was just saying that withdrawing any dividends out of the account will obviously limit growth of the investments vs reinvesting. That’s it :)

[@BOGOtm]

Hi Sasha, How does High Frequency Trading work in the UK with the Bed & Breakfasting? Do they trade exclusively in derivatives? I assume derivatives are not subject to the B&B rules? Thanks!

[@SashaYanshin]

They have systems that capture a lot of this - the issue there is going to be more in the reporting than in the amount of tax owed. Instruments are a whole different kettle of fish - if someone is a genuine day trader with high quantity of transactions, then HMRC may deem the income there to be taxed as Income rather than as Investing and that's generally a bad thing because the rates will be much higher.

[@MichaelEst1984]

Always been confused about the tax on any shares and savings etc this has helped a lot thank you. What would happen if I sold £20000 shares on Freetrade and put them straight into an ISA on the same platform?

[@SashaYanshin]

If your gain from the £20,000 sale is under £12,300, then you owe nothing in Capital Gains tax (assuming no other gains are made) and from that point you will not owe any CGT going forward BUT you will lose the FX fees on the selling and buying if you have stocks in $.

[@marketbeans]

Awesome video 👏👏👏

[@SashaYanshin]

Thank you!

[@JesusGotFunk]

Hi Sasha - im struggling to understand if i should open the ISA or not? I intend on investing 200-500 GBP each month.

[@SashaYanshin]

Well I can’t suggest what you should do but if I was in that position, for the first few months an ISA is really not needed if there are better priced non ISA options and if I wasn’t using my capital gains allowance in any other way. One risk is being out of the market - if you move from outside the ISA to inside, you’ll lose a week moving your money over so that’s something to consider because that could cost more than the ISA fees. In general, if everything is equal and you’re not using the full £20k ISA allowance, the Stocks and Shares ISA is a pretty awesome product 👍

[@JesusGotFunk]

@@SashaYanshin that gives me something to think about. Thank you for making the content you are. It's very interesting.

[@JesusGotFunk]

@@SashaYanshin if the cgt allowance is £12,300 then my investments will likely not reach this sort of figure, correct? So why is the ISA better for someone who is unable to utilise the full £20k allowance? If I only deposite around £5k a year, I will be no where close to reaching the £12300cgt allowance. Struggling to explain myself I think if you are grasping what I am saying I would really appreciate hearing your thoughts.

[@SashaYanshin]

@@JesusGotFunk Well imagine you deposite £5k a year for a few years. And you invest in stocks that grow 25-30% per year because you are investing in a bull market... In that scenario you could easily have £12,300 of gains at the end of it. Remember that that gains allowance doesn't spread over the number of years you've held investments - whenever you sell you just get the £12,300 on gains and that's it. So people want to make sure that whenever that happens in the future, they won't have to pay tax on it and if that is likely to happen in the future, then an ISA is a great way of avoiding the problem. 👍

[@JesusGotFunk]

@@SashaYanshin that make perfect sense. That's what I have been struggling to understand. 👍👍👍👍👍

[@kevinhughes9801]

Good stuff thanks

[@SashaYanshin]

Thanks Kevin!

[@Amber_107]

Does the 15% withholding tax on US is automatically deducted by the broker in ISA account?

[@SashaYanshin]

Yep - you won’t ever see it or have to pay it.

[@Freemasontate]

What if you’re on UC? will it effect it

[@adiadindas]

Thanks, it is very useful and informative. Thumbs up. I just wonder What about the people who trade multiple times say a few thousands in a year making having gain and loss in more than 100 different stocks using the same money? I doubt anyone will be able to trace it. I also doubt any trader will ever do like what is described in the video. The amount of time that you need to spend comparing to the gain you have made does not make it worthy. Could you not just see what you have originally in the account on the start of the tax year and see how much you gain by the end of the tax, given no money is added deduct the two and taht is your gain in a partiualr tax year ?? Most people have their account under ISA and only use general invest for the stocks are not available under ISA account such as many chinese stocks, penny stocks, etc… So the amount of gain under invest account will be far less than £12,300 a year. Do you still need to calcaulate that when it is is very obvious your gain is much lower the the threshold ??

[@SashaYanshin]

In terms of how you do the calculation - that's up to you. I'm explaining what the official position on this is from the Government and how you are meant to calculate them. I won't be advising you on how to go and do it in practice :) You'll need to make that call yourself. If you have under £12,300 in gains, then you do not have to submit a Self Assessment except in some specific cases like when you are registered already or have particularly high transaction volumes but make sure you check if you think you may need to do it even without going over the threshold.

[@stealfon2045]

So if I never cash in my dividend and my stock I won't need to pay my tax.

[@lawrencer25]

I have just opened a stock & shares ISA on Monday and have about £4000 in it already. What happens to my ISA from 6th of April? Do I have to stop putting money in it ? £3 fee to Free trade ? Do I have to open a new ISA ? Open a new account with FreeTrade? Start buying all the stock & shares again ? Sorry to ask so many questions. Cheers Lawrence 1🕴🕴🙈

[@SashaYanshin]

Hey Lawrence, 1. From 6 April your annual allowance renews. That means you can put up to another £20k into that ISA before 6 April 2022. 2. If your ISA is with Freetrade, they charge £3 per month for as long as you hold the account. 3. You do not have to open a new ISA but you are free to do so if you choose. 4. You do not have to sell/do anything with your existing investments. You can keep them. You can also sell some and buy other stocks. 5. Even if you open a new ISA and begin using that one, you are allowed to keep your old Stocks & Shares ISA and you can sell/buy stocks in that one as long as you only make deposits to ONE of those two ISAs during the course of a financial year.

[@lawrencer25]

@@SashaYanshin Thank you very much on getting back to me . I have told quite a lot of people about you and they are all following you 🥂🥂🥂👍👍👍🕺🏽 Thank again

[@SashaYanshin]

@@lawrencer25 Thank you so much Lawrence! That's really kind of you!

[@lawrencer25]

Do you do private courses or one 2 one ? Cheers 🕴

[@SashaYanshin]

@@lawrencer25 Unfortunately no - I have very limited time as it is and am trying to make sure I put all of that time into producing content that can reach many people rather than just doing 1-on-1 things + I don't want to charge the sort of money that this would cost. I am planning to possibly do some courses at some point (maybe even later this year) that might go partway in providing a very structured way of explaining some of the things I talk about but we'll have to see how things go before I get there!

[@Bakersfeld84]

Thanks, very helpful. Is it permisable to open 2 new stocks & shares ISAs in the coming new tax year? I want to open one with Freetrade into which I will transfer a large existing cash ISA opened in a previous tax year with another provider when it matures in a month, but not add any new funds to it. Then I want to open another with Trading 212 into which I will put my full 2021-22 ISA allowance. So I'm only funding 1 ISA from my 2021-22 allowance. Do the rules allow this?

[@SashaYanshin]

Technically I think you will be ok with that - it's somewhat unorthodox but I think it's actually within the rules given you are only contributing to one Stocks & Shares ISA during the financial year. This is definitely one for the disclaimer though - you might want to get a 100% answer on this from someone properly qualified but I don't see any reason why you couldn't do that.

[@Bakersfeld84]

@@SashaYanshin Fair enough. Thanks very much.

[@Broke.To.Billion]

sasha please give us the new report of april 2023

[@valentinaosborne5574]

Thanks a lot for this! Quick question - I know trading 212 can provide us with tax summaries of profits/losses for the tax year but I don’t believe these include any bed and breakfast exclusions for gains or inclusions for losses. To work these out would it be a matter of looking through all your trades and working this out? 😅

[@SashaYanshin]

There is definitely a lot of manual work required if you are a frequent trader at the end of the tax year! I will be covering the specifics in another video (or 2) soon!

[@valentinaosborne5574]

@@SashaYanshin that would be great! Especially if it came out before 5th April hehe!

[@SashaYanshin]

@@valentinaosborne5574 The truth is - you only really need it afterwards unless you want to somehow bed and breakfast into recently sold stocks before the year end. But should be coming as soon as I get to it - possibly even later today!

[@ilstam9942]

So if you are investing in an ETF or a mutual fund that is domiciled in Ireland you don't pay any stamp duty yourself, but the fund has to pay stamp duty for some of the UK stock it purchases. Is that correct? So essentially you are still paying this tax just it happens indirectly?

[@SashaYanshin]

Essentially you do indirectly pay stamp duty but as a proportion of holdings, the amount that is actually transacted will be very low so it will get lost in the numbers!

[@blueleaves3652]

Hi, I work for a company ( I pay taxes as PAYE), my question is: Can I still register for Self Assessment, to report my capital gains that I made in my Invest acccount, to HMRC ? Please Help !

[@SashaYanshin]

Yep - you can fill out the Self Assessment if you want to regardless of where you work.

[@blueleaves3652]

@@SashaYanshin I thought only the self-employed people can register for self-assessment ?

[@SashaYanshin]

@@blueleaves3652 Nope. There was even a big case about 2 years ago which then pushed through a clause in the Finance Bill that voluntary submissions are valid returns. Before that it was sort of a grey area although in most cases there was no issue at all with it. The case more confirmed it than anything.

[@blueleaves3652]

@@SashaYanshin cheers Sasha ! 👍

[@callumgriffiths7552]

Hi Sasha, I’m planning on opening a stocks and shares isa with vanguard to use their lifesrategy funds, do you think it’s best to use this platform with a credit card account, for bank transfer payments

[@SashaYanshin]

Not sure how you mean - a credit card and a bank account are two completely separate things. I personally wouldn't use a credit card to fund an investing account because of a whole host of reasons but whether you use a bank transfer or a debit card shouldn't really matter if that's what you're asking.

[@callumgriffiths7552]

@@SashaYanshin okay thanks

[@jjaa]

I think all the ISAs share the limit except the "help to buy isa" but I am not sure about LISA

[@SashaYanshin]

All ISAs do share the limit... Did I say something different? LISA also shares the same total limit although its own £4k limit is lower.

[@ralphhardie7492]

Thank you 😊

[@SashaYanshin]

Glad it was useful unlike the Tesla video ! 😁👍

[@adamellistutorials]

What if you’re investing 40+ k a year?

[@jackoreilly352]

Thanks Sasha, love your videos and all you do 👍🏻

[@SashaYanshin]

Thanks Jack! Really appreciate it!

[@exildur]

Example, I earn £40k from my job so I am £10k under the higher tax band. So if I withdraw £100k of profit from stock gains, I will get the first £12.3K free, then pay 10% on £10K (bringing me up to the 20% band), then pay 20% on the remaining £78K~? Have I understood that correctly?

[@SashaYanshin]

Yep - that's exactly it. 👍 Remember that's only on the gains as well and working that out is a whole other topic! :)

[@exildur]

@@SashaYanshin Awesome - thanks for the helpful video.

[@felixzin6545]

Thanks

[@ErosiumTV]

DUDE being real here.. Sorry its not about finance. But your eyes frigen POP when you doing that blue shirt / blue eye combo. Also... Sick advice THANKS! lololol

[@SashaYanshin]

Wow. I get compliments even though I look like like a caveman/hobo hybrid!

[@Andromedaxterr]

Iam a basic rate taxpayer why is that affecting how much capital gains tax iam going to pay ? Let's say I earn 35.000 per year but I hold hundreds of thousands in stocks and shares and If iam going to dispose of my assets it will already put me into a higher tax bracket ?! Or not ? That's why I don't understand why does it matter if you are a basic rate taxpayer or not.

[@SashaYanshin]

If you earn £35k as per your example, then the reason it matters is because Capital Gains rates are calculated on top of income. So for example you dispose of a load of shares with £200k capital gains in total. The first £15k (difference between £35k and £50k) will be taxed at the lower 10% rate because it is within the Basic Rate band. The remaining £185k will be taxed at 20% because they are above the threshold.

[@Andromedaxterr]

@@SashaYanshin thanks 😊 Got ya !!!

[@CaptainHuler]

I was wondering If you would like to make a video about comparing platform Trading 212 vs. Etoro..?

[@SashaYanshin]

I already have a few where I talk about the different investing platforms individually and comparing the different ones. Will be making more in the future too!

[@Idealclone]

Thank u sash

[@SashaYanshin]

Glad it was useful!

[@wanem1622]

👍

[@SashaYanshin]

Thank you! :))

[@shaw4020]

I made ut to the end

[@fuksmkoud6716]

Capitol gains tax drops from 6k to 3k in April!

[@geolykos]

So say I'm not using an ISA and my stocks alrdy have high gains. I can then just sell and buy them immediately and I won't have to pay tax??

[@SashaYanshin]

Unfortunately I am pretty sure the answer is no. That would allow you to retrospectively put any shares you have previously bought into the ISA tax wrapper which would be an odd scenario so pretty sure that any that are sold would be subject to Capital Gains calculations and then the cash goes into the ISA and from there nothing else will be due. Do remember that there is the £12,300 tax-free allowance in every tax year though...