Originally Posted by slo007
I sold Barings Europe Select Class I - Income (GBP) via the website Hargreaves Lansdown (HL.co.uk) for 1,099.62. The cost was 1200.00, so I incurred a loss of 100.38
I had "income" from the wound down of the Woodford LF Equity Income Fund in the sum of 1227.19 (on HL UK). The cost was 2,178.42, so a loss of 951.23
Finally, I had income from various funds and indexes (i.e. Marlborough Multi Cap Income, Royal London Sterling Extra Yield Bond, etc.) of 377.38.
I manage my own portfolio; which resides in an ISA in the UK. Income is reinvested on the HL platform.
So an overall loss for 2020. How would I report it correctly?
Does it make sense to bother since values are so small overall?
I checked with an accountant, he wants 500 Eur plus VAT to assist. Under the circumstances, it makes little sense.
i would have charged more. i'm not being smart.
the value in an accountant (or tax advisor) is that they will read the prospectus of each asset you buy and that takes time at their rates. did it mention what the funds were? the larger the portfolio the more it costs.
if you manage our own portfolio and do it incorrectly, like not telling revenue in a tax return that you acquired certain offshore funds you had a material interest in, the penalties for getting it wrong down the line are more extreme.
I wouldnt' have a clue whether those funds are ETFs Offshore funds, or UCITS type so wouldn't make a call on correct tax treatment here. broadly though, if funds are similiar to SICAVS like UCITS (think IFSC type funds on the whole) they will identify as so on the asset prospectus on acquisition. then the tax treatment is largely done at source and you get thet net amounts on redemption i.e. an exit tax is applied before you get your money. you don't have a reporting issue income or capital taxes wise.
that's not a given but the reason your accountant will charge you is because it'll take them tie to trawl through the various different prospectus and then compare to whether or not they are one type of asset or not. good location, bad location, etf, UCIT, SICAV material interest etc.
just for info purposes though, if its an "income" asset and you redeem for a loss or a gain, you don't pool "gains" or "losses" with most funds, each is separate. you might make an economic total loss or profit but its not reported (if it needs to be) as a total loss that way. you could quite easily have an income tax issue with one asset whilst making economic "losses" on 50 other assets.