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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3663
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based)
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Hi Tony A new question for you. I am just about to complete

Resolved Question:

Hi Tony
A new question for you. I am just about to complete CT600 on line and have been doing this for a number of years now. However for the 2012/3 year I put 50k on the stock market as bank interest v. low. At year end the shares had appreciated to £54143. However I did not sell any shares in that year although I had 71.66 in dividend payments.
The question is how do I account for the shareholding in the balance sheet and P and L accounts for 2012/3?

For the current year I have sold the shares and made around £5750 from that, so how would I account for this when it comes to completing the return for the 2013/14 year?

Many thanks
Martin
Submitted: 1 year ago.
Category: UK Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello and welcome to the site.
Martin, thank you for your question.

Please clarify for me..

The gains made from sale of shares in the current year ... are they relating to the shares sold held by the company?

Many thanks

Customer: replied 1 year ago.


Yes the shares sold were held in the companies name in a Hargreaves-Lansdown account

Expert:  taxadvisor.uk replied 1 year ago.

Martin, thank you for your reply.

As far as the shareholding at year end is concerned and completion of CT600 return..there is no provison to show investments as such. You can overcome this by showing investments as Intangible assets - others. I have done this for other clients after consultation with HMRC. This is how you should report your investment in shares of a company. Remember to provide additional information as stated below.

Section 2 - Accounts:
Statutory Accounts Notes - Put a cross in box Intangible assets - other
Report investment as Intangible assets other - show share investment at cost.


In the box additional information on page Intangible assets - Total
State the company holds xxxx ordinary shares in xxxxxxxxxplc.

This should suffice.

Show dividend income in the profit and loss account.

As the shares have been sold you will show the gain on sale of shares under capital gains within CT600 return.

The version of CT600 Return you download from HMRC site is a simplied version and does not cater for investments etc. You may have to use commercial siftware to fill a full CT600 return for 2013-14.

 

 

I hope this is helpful and answers your question.

If you have any other questions, please ask me – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3663
Experience: FCCA - over 35 years experience as a qualified accountant (UK based)
taxadvisor.uk and 3 other UK Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.

Good afternoon Martin

I notice you have viewed my response to your original question on how you should account for the shareholding in the balance sheet and P&L accounts for 2012/3 (Customer Last Viewed on 9/7/2013 at 4:35 PM).

I hope you were able to file CT600 Return using HMRC website. The simplified version of CT600 from HMRC is not suitable if you have fixed asset investments or current asset investments. Just checking to see if you have any issues relating to your question that I may not have addressed. Please let me know if I can be of further assistance.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

Customer: replied 1 year ago.


Hi Tony Thanks for this. I have not had time to get back to the CT600 yet but I am sure your advice is sound! Will rate it excllent as usual and will get back to you if I have any more problems!


Thanks again Martin

Expert:  taxadvisor.uk replied 1 year ago.
Martin, thank you for accepting my answer.

I am not Tony but another expert on the site. I have helped you with another question you had on property held by the company a few weeks ago.

If I can be of any help in the future, you can always direct your questions to me.. and also address it to taxadvisor.uk in the body of your question.

Good luck.
Customer: replied 1 year ago.

Another thought. Could I count my share dealings as trading? Historically I purchased a bundle of shares for 50k in 10 diff businesses in Jan 2013. I sold 5 holdings in June 2013 and purchased a further 5 holdings. I sold the lot in August for £55608 making a profit of £5608.


I have not held any of the shares for long and could possibly say that I have been trading with them rather than holding for a longer period as an investment.


The reason I am looking at this again is that it will I think make my returns easier!

Expert:  taxadvisor.uk replied 1 year ago.
Martin, thank you for your additional question..

As your pricipal activity is not trading in shares, these would appear to be one offs and therefore regarded as fixed asset investments.

Many thanks.
Customer: replied 1 year ago.


thank you for that. Martin

Expert:  taxadvisor.uk replied 1 year ago.
Martin, you are welcome.

Good luck

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