Posted on: 2nd April 2017

Recording keeping for Capital Gains Tax

Once you know that HMRC have deemed your day trading activities to be that of a private investor liable to Capital Gains Tax (CGT), what records must you keep to support the tax return due by 31 January after each tax year?

You will already have a log of every transaction you undertook throughout the tax year, as a by-product of your day trading activities. This might be the transactions that took place using an execution only online broker or the transactions between you and a broker that you sought advice from. These records must be kept for a year after the tax return filing deadline of 31 January. The records will have to be kept longer where the tax return was submitted late or where HMRC are carrying out a check on the tax return.

For the purposes of calculating CGT, you can deduct certain expenses such as commission charges, before arriving at the total gains liable to CGT. A record of the gains, losses and allowable expenses that arose thought the tax year should be kept on record to support the tax return. You can read more about recording keeping for CGT on HMRC’s website: