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
Yes the shares sold were held in the companies name in a Hargreaves-Lansdown account
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 - otherReport investment as Intangible assets other - show share investment at cost.
In the box additional information on page Intangible assets - TotalState 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.
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 (JACUSTOMER-cu07wi7e- 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.
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
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!
thank you for that. Martin