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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am interested to know & calculate my capital gain/loss and how can I maximize on

Customer Question

Hi I am interested to know & calculate my capital gain/loss and how can I maximize on capital gains/loss and following are activities:
- forex trading included for loss/gain towards capital gains.
-Also if shares purchased in 2006 sold at loss last year should be calculated towards capital gains.
-small flat sold with profit around 50k without any expense deducted (solicitor fee, stamp duty, refurbishment, mortgage fee to buy, re-mortgage my main home to pay for deposit, selling fee). So not sure what all can be included as I have done a lot to just try to buy and sell the flat.
-can Mortgage fee during purchase of flat be included in the calculation. What about re-mortgage my house for deposit I paid and the interest I have been paying?)
-invested in ISA £250x12months basically I pay £250 monthly into ISA since few years.
-What other items can be used to show I am in loss/gain.
Thx
Jason
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Unless you are a full time forex trader and, sometimes even if you are a full-time trader, HMRC will look very closely at any claim to relief for forex losses. If you trade through a spread betting account, the losses won't be allowable in any event. Many people try forex trading and most lose. HMRC's view is that most people are just playing at it, having been convinced by the snake oil salesmen that its easy to make money. So long as you advise HMRC of a capital loss within four years of the end of the tax year in which it is incurred, you can carry it forward indefinitely to use in the future when you have net gains in a tax year which exceed the annual CGT exemption. You only need to use so much of the loss as is required to bring the gains down to the level of the CGT exemption. Normally, you can claim stamp duty, survey fees, local search fees, legal fees, refurbishment fees, mortgage arrangement fee, selling agent fees, improvement costs against the gain. A remortgage fee on the same property once bought is not directly related to the purchase so HMRC may disallow that. You can claim advertising fees if you sell a property privately. I cannot see why you cannot claim the fee you pay to raise money towards the deposit using your main home as security. Normally, once you have a property which is let, you claim remortgage fees against rental income. ISAs are wrappers to shield investments and income form tax and have no effect on your CGT situation. You cannot just find anything you made a loss on and claim it. There are rules. Basically, you make gains and losses from selling assets and some chattels like valuable antique furniture and art, coin collections, stamp collections etc. That's it. Take a look here for information on CGT. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Hi Tony,Thanks for your email and we just got home and checked your email.Re Forex: for the year 2914-15 I didn't have a good job and business was making a loss and I went ahead with full time forex trading for 14months. I did use forex betting account with Forex.com,so not sure if this makes the case for writing the loss against my cgt gains.lAre you 100% sure I can add the Mortgage arrangement fee charged by lender for buying by-to-let property against CGT gain.Ref Remortgage: i went for repayment to interest only for the remortgage I took on home to raise the find for buy-to-let. So I am not clear from your email if this can be added into CGT calculation.
I understand that I can add the re-mortgage fee in my home too that was paid to the lender to raise capital(kindly reconfirm and sorry to ask you to reconfirm for few items as I don't want to get it wrong).I wasn't aware that I could go back 4 years to pick my losses and include them in the future.Is there a way I can call you to clarify these items.Many thanks
Jason
Expert:  TonyTax replied 1 year ago.
If your Fores.com account was a spread betting account, you won't have a chance of getting the losses accepted. Betting losses are non tax deductible. Nor are betting winnings taxable. As far as the mortgage arrangement fee is concerned, it used to be that HMRC would not allow a fee to be deducted from rental income in the case of a buy to let but as they (the fees) became more commonplace, HMRC relented. Look here for confirmation. If the property was bought initially as a home for the purchaser, then the fee is added to the cost of the property. I've seen many capital gain calculations include the fee along with legal fees etc. As far as the buy to let is concerned, mots owners claim the fee against rental income these days. You have to claim the losses by either including them in your tax return for the year in which they were incurred or by writing to HMRC if you don't complete annual tax returns within four years of the end of the relevant tax year. If you don't, you cannot use them.
Expert:  TonyTax replied 1 year ago.
Hi.
I'm just following up to find out if my answer helped or if you have any further questions.