Capital Gearing Share Discussion Threads

[gengulphus] 17/2/2021 22:22

bunlop,

Redcentric (RCN) paid shareholders compensation for people who purchased shares between 9/11/15 and 7/11/16. I sold all my holding on 7/11/16. But I have now been paid £1305 compensation which I received on 06/8/20 following an agreement between Reedcentic and the FCA.
Is this subject to tax and if so what tax and how do I declare it?

Sorry I haven't been around for so long - various personal matters have distracted me from coming here for so long that I've got out of the habit...

But you haven't lost out as a result, because I'm afraid I have no idea about the answer to your question! Basically, it's not a situation I've ever experienced myself, nor something I happen to have come across while investigating something else.

Gengulphus

[lozzer69] 03/2/2021 09:32

Thanks for your comments and I think I will try both cgt and pnl . I was in Rcp for years but left as disappointed it's with pandemic performance and also fees are high.

[panshanger1] 02/2/2021 08:25

CGI definitely racier !!But a different animal Skyship - CGT is a wealth preservation trust as is Personal Assets, they have a very sizeable allocation to government bonds and US treasuries or example Go back a bit further and see how CGT behaved in 2008 and through other large market corrections Of course that's not to say you can't own CGI as well all depends how you want to structure your portfolio

[skyship] 01/2/2021 15:24

CGT - RACIER!!! Sorry panshanger, but surely you're setting your targets far too low....

# Premium = 2.4%
# Yield = 0.9%
# NAV growth: 3yr @ 3.9%pa; 5yr @ 8.5%pa; 10yr @ 7.0%pa

I just can't figure why you would accept such performance.

Try CGI...Geo. diversification to Canada - great performance, yet still trading on a 30% discount & 3.5% yield. Worth a look to where the grass is greener...

[panshanger1] 01/2/2021 14:21

I think CGT is a little bit racier - not much, I hold both and have done for many years I also have a smallish allocation to RIT capital which operates in a similar way but is more volatile with its unquoted holdings - still always happy to invest alongside the Rothschild family ( ex Nat who's not involved)

[s2lowner1] 28/1/2021 17:45

Thanks troutisout I will do another search before I shred

[troutisout] 28/1/2021 15:55

If you carry them forward each year on CGT part of tax return they are with you for as long as you don't need them.

It will tell you on the HMRC website, but I think the suggestion is you keep tax records going back 7 years.

[s2lowner1] 28/1/2021 15:52

As I understand

You do not have to REPORT losses straight away - you can claim up to 4 years after the end of the tax year that you disposed of the asset. But you can use recorded losses as far back as before 1996

HMRC says Businesses must keep records for 5 years after the deadline. but I can't see anywhere it says the same for personal CGT losses.

[arab3] 28/1/2021 15:31

I thought it was only 4 years, will check

[orchestralis] 28/1/2021 15:25

I think I read somewhere that you can only claim losses in the last 6 year period, anything before that can't be.

[s2lowner1] 28/1/2021 15:20

Hello I wonder if you could advise re record keeping

I have CGT losses which I carry forward each year that may be useful to me as gains are taken off accrued losses first before annual CGT allowance. I intend to use these against gains where I buy outside of my ISA and Sipp, to provide additional retirement income as dividends or taking gains.

I have records of share contract notes (tax invoice) going back 20 years which are bulky so was wondering what year can I shred them upto and what would I need to keep to prove my historic reported HMRC losses if required to do so ? I have submitted yearly returns recording the losses with spreadsheet back up which have never been contested

Thanks s2lowner1

[lozzer69] 28/1/2021 11:06

How will the trust perform when Peter Sillar hangs up his boots. I want to buy a defensive trust to sit alongside Lifestrategy 20pc and it's this or PNL or both

[dean moriarty] 14/1/2021 10:49

I have never paid CGT. I may soon have to. Unfortunately I have lost the stock trading documents from previous deals, mostly loses, and brokers like Beaufort who I used have closed. Can you please tell me the best way to obtain copies to prove loses or do I submit recreated records mentioned by HMRC?

[prolapse] 29/12/2020 12:21

Thanks chaps, as I suspected.

Thametrader, the reason is this. If you have already used some of your current year ISA allowance with broker A, but broker A does not trade stock on ASX were you might want to purchase a stock. Then you are forced to use broker B who does trade ASX, but then can't use up remaining ISA allowance to do so.

[zangdook] 29/12/2020 11:52

You're right, the answer is no. You might be able to put all the money in one account and then transfer some of it to another account later, but all the brokers I've been involved with seem to insist on transferring all or nothing. I don't know if there's a rule about that or if it's just the brokers being annoying.

[thamestrader] 29/12/2020 10:45

Even if you could, why would you? Two lots of fees, two apps, two everything.

But anyway, I think the answer is no. You can only have one S&S ISA per year. You have to provide your NI number when you apply, and I think this is so they can easily check if you already have one for that year.

Happy to be corrected on this if I'm talking rubbish (wouldn't be the first time).

[prolapse] 29/12/2020 10:26

Could anyone answer this question please.

Can I use my annual stocks and shares ISA allowance for a specific year (this year) with more than one broker? For example £5K in an Barclays stockbroker ISA and £5K in a lloyds stockbrocker ISA.

[bunlop] 18/12/2020 18:59

Pedr01 - I am inclined to think that as the payment was for compensation for misleading me that it would be not subject to income or capital gains tax. However I am not 100% sure of this.

[pedr01] 15/12/2020 22:20

1166:-
bunlop,

In the absence of a "proper" answer from G, and given that it is effectively proceeds from RCN and you received monies this year, I would include a dummy buy/sale into my CGT calculations/summary sheets for this year, viz;

Stonebanks pseudo =>

Dummy RCN (DRCN) ; Dummy buy/sale to adjust for £1305 payment
06/08/20, B, 1305, 0.0, 0.0 ; from RCN Shareholders Compensation scheme.
06/08/20, S, 1305, 100.0, 1305 ; Original RCN shares sold on 07/11/16

Is this correct? Who knows, but it is what I would be doing the circumstances unless advised otherwise.

Originally I thought you should adjust your 2016-2017 calculations/tax return, but then you only received the money this year???

[bo doodak] 15/12/2020 12:43

Cheers serratia, its good to know I was worrying unnecessarily.

[serratia] 15/12/2020 10:54

I have 2 ISA's but only contribute to one of them each year. When I add to the one I didn't use in the previous year they just say ok we'll reactivate it. As long as you only contribute to one in a tax year you're ok.
My wife has 2 as well.

[bo doodak] 15/12/2020 08:39

I'm currently with IWEB as well, so that's really useful to know.

Thanks zangdook.

[zangdook] 15/12/2020 05:19

As long as you don't sign (or box-tick) an ISA application for the new year with the old provider, and don't add any money, I think you're ok. I have ISAs with two providers; iWeb puts something about "unused allowance 20k" at the top of the page at the start of the year, but it doesn't mean anything unless I choose to use it. HL bombards me with emails about how important it is to use my allowance, but I ignore that, too.That's my opinion, anyway. You could always send a message to your current provider saying you don't intend to open a 2021 ISA with them.

[bo doodak] 15/12/2020 00:07

Hi, I was hoping to clarify whether this is a valid concern I’ve got, or not.

My current self-select ISA provider automatically applies a new £20k stocks allowance at the start of every tax year.

Next year I wish to open and contribute £20K to a new provider.

If I contribute to this new provider's account would I be judged as having 2 ISA’s open in one tax year, by virtue of my current provider adding on a new £20K limit, even though I would not contribute anything into my current providers ISA?

Thanks

[bunlop] 05/12/2020 19:52

Hello Gengulphus, Redcentric (RCN) paid shareholders compensation for people who purchased shares between 9/11/15 and 7/11/16. I sold all my holding on 7/11/16. But I have now been paid £1305 compensation which I received on 06/8/20 following an agreement between Reedcentic and the FCA.
Is this subject to tax and if so what tax and how do I declare it?
Many thanks.