The 4 week rule with stock purchasing/selling

Depende

Hi all,

So I’ve been day trading for the last few months with Trading 212 UK (but living in Ireland) and I’m confused with tax with the 4 week rule mainly. Currently I’m unemployed and funds that I have been generating have been outside of work (via trading daily of around 10-15 purchasing and selling on average) but once the economy picks up again I’ll be back fully-employed, but would still like to do day-trading. So I would then be charged income tax on my PAYE wage and CGT on trading income.

So right now I understand that anything over the initial €1,270 is then charged 33% CGT which from January – November must be paid by Dec 15th, and 1st Dec – 31st Dec trades must be paid by January 31st of the next year. Where I then fill out the TR1 form to register for CGT and then the Form 12 to file your CGT return by October 31st the following year.

Until now with Trading 212 my belief was that I would pay CGT on the total profit and loss number that shows up in my account?

At the moment my buying and selling is usually coming in less than the 4 weeks period. But the complication for me arises with the 4 week rule.

Example:
I have a initial account deposit of €200

I buy shares in XYZ Corp and in week 1, I gain €1000 profit.

So now my total account is €1200

Week 2 I make a loss with a different stock of €-800 and now I’m down to €400, with €200 profit gained from the initial stock left, and €200 from my deposit.

Because they were different stocks with the 4 week rule I cannot offset them? So instead of paying CGT of €200.00 I still have to pay CGT for the €1000?

Thanks for help in advance!!!!

okidoki987

Depende wrote: »

Hi all,

So I’ve been day trading for the last few months with Trading 212 UK (but living in Ireland) and I’m confused with tax with the 4 week rule mainly. Currently I’m unemployed and funds that I have been generating have been outside of work (via trading daily of around 10-15 purchasing and selling on average) but once the economy picks up again I’ll be back fully-employed, but would still like to do day-trading. So I would then be charged income tax on my PAYE wage and CGT on trading income.

So right now I understand that anything over the initial €1,270 is then charged 33% CGT which from January – November must be paid by Dec 15th, and 1st Dec – 31st Dec trades must be paid by January 31st of the next year. Where I then fill out the TR1 form to register for CGT and then the Form 12 to file your CGT return by October 31st the following year.

Until now with Trading 212 my belief was that I would pay CGT on the total profit and loss number that shows up in my account?

At the moment my buying and selling is usually coming in less than the 4 weeks period. But the complication for me arises with the 4 week rule.

Example:
I have a initial account deposit of €200

I buy shares in XYZ Corp and in week 1, I gain €1000 profit.

So now my total account is €1200

Week 2 I make a loss with a different stock of €-800 and now I’m down to €400, with €200 profit gained from the initial stock left, and €200 from my deposit.

Because they were different stocks with the 4 week rule I cannot offset them? So instead of paying CGT of €200.00 I still have to pay CGT for the €1000?

Thanks for help in advance!!!!

Isn't the 4 week rule for buying and selling the same stock?

Will Yam

okidoki987 wrote: »

Isn't the 4 week rule for buying and selling the same stock?

Yes.