Will this reduce my capital Gains Tax? (UK)?
Hello im 22 years old and I have recently got into the stock market and got lucky and made myself a whopping 100k its in my trading account and not my bank account.
If I was to withdraw it all at once i would end up paying around 15 - 20k in tax what i think is over the top. Why should we give money to a goverment that classes its citizens as second class and give free hand outs to people who arrive on rafts.
My dad works in a bank and he said if im smart and I only withdraw 20k at a time spaced out over the year or two i will end up playing alot less in tax?
He said I could declare the first 20k then put 1k back into the trading account then withdraw the other 20k later on down the line and say i made it with the 1k i put in.
This would reduce my tax bill by a huge sum, is there a better way to do it or any other ways? :)
- MattLv 52 months agoFavourite answer
Capital Gains is based on when you sold the stock(s), not when you transfer the proceeds into your bank account. You will need to complete a self-assessment and I wouldn’t recommend you lie on it or you could land yourself in trouble with HMRC. Next time, make sure you trade stocks in a Stocks & Shares ISA if you want to avoid CGT