Tax Report FAQ for UK Residents

Any data reported in the tax statement is strictly for informational purposes.

It is not intended as a tax declaration or as a substitute for legal advice.

We strongly advise you to verify the tax statement with your tax advisor.

eToro does not provide tax advice and this page is for informational purposes only.

 

Presentation :

On this page, you will find information about the eToro Tax Report, which is a document generated based on your previous annual trading activity on the eToro platform and is structured in accordance with local tax guidelines.

  • eToro does not provide tax advice and the information provided should not be interpreted as such. Customers should seek independent tax advice.
  • It is noted that other forms of income could be included in the preparation of a self- assessment.
  • For more information, please visit the HMRC Self-Assessment website: https://www.gov.uk/self-assessment-tax-returns
  • Tax Year: April 6. – 5.April  2023
  • Reporting Currency: Pound sterling (GBP)

Filing Date:

  • The general deadline is January 31st for electronic submissions.
  • For the paper format, the deadline is October 31st.

Reporting Languages:EN

Consumption Logic:

Sales are matched in the following order:

  • “Same day” rule: a sell is compensated with a purchase on the same day.
  • “Bed and breakfast” rule: a sell is compensated by a purchase that occurred 30 days after the sell.

Taxable Basis Income: 

  • Dividends, interest, other income, “Capital Gains” from DDS, income from funds
  • Capital Gains: capital gains from any assets and fees / capital losses from investment funds.
  • Wealth: no wealth tax

Tax Forms:

  • The following forms are relevant in order to declare the income from your investments:
  • SA100 tax return: https://www.gov.uk/government/publications/self-assessment-tax-return-sa100
  • SA101 additional information: https://www.gov.uk/government/publications/self-assessment-additional-information-sa101
  • SA 106 foreign: https://www.gov.uk/government/publications/self-assessment-foreign-sa106
  • SA108 capital gains summary: https://www.gov.uk/government/publications/self-assessment-capital-gains-summary-sa108

Examples of the eToro Tax Reportand the HMRC Self-Assessment forms

 

eToro Consolidated Income Summary

This section of the eToro Tax Report can be used to assist in completing the self- assessment forms. See the reference column for which SA form and box should be completed with the relevant financial information.

This is not a guide on how to fill in your tax return. Please take the official notes to the tax forms into consideration and consult your independent tax advisor for questions.

For detailed entries, please compare the detailed income and capital gain reports. Presented here are only examples from the eToro report. In general, one would enter the total sum amount of all of your financial accounts across all banks and financial service providers per the appropriate box.

Source: eToro UK tax report

Form – SA100 Tax return for Self-Assessment

Report your income and claim tax relief and any repayment due to you using the SA100 Tax Return.

Source: eToro UK tax report

Source: HMRC

Form – Self-Assessment: additional information (SA101)

Use supplementary pages SA101 to record less common types of income, deductions and tax reliefs on your SA100 Tax Return.

Source: eToro UK tax report

Source: HMRC

Source: HMRC

Self-Assessment: Foreign (SA106)

Use supplementary pages SA106 to record foreign income and gains on your SA100 Tax Return.

Source: eToro UK tax report

Source: HMRC

Source: HMRC

Form Self Assessment: Capital Gains Summary (SA108)

Use supplementary pages SA108 to record capital gains and losses on your SA100 Tax Return.

Source: eToro UK tax report

Source: HMRC

Source: HMRC

Source: HMRC

Calculation of Capital Gains / Differences from eToro Account Statement

You may see variations between your eToro Account Statement and your eToro Tax Report. These variations may be derived from the following differences in the way in which the Account Statement and the Tax Report are calculated.

  1. In order to calculate the financials on the Tax Report, the values of the positions represented are converted from USD to local currency (GBP for UK) at the time of the opening and closing of the position. This may cause a deviation between the Account Statement and the Tax Report.
  2. The cost basis for calculating your capital gains — The Account Statement takes into consideration the closing of your positions based on your selection (specific identification method) while the Tax Report takes into consideration the matching rules as required by local British law. These may include, but are not limited to:
    1. “Same day” rule
    2. “Bed and breakfast” rule (30 days future); or
    3. Average price rule (‘Section 104 Holding’)
    4. In the case of offshore non-reporting funds — LIFO (“Last-In, First-Out”).
  3. The Tax Report is calculated for the UK tax year which is April 6th–April 5th and not the calendar year.

eToro does not provide tax advice. For more information on the British matching rules applied to your Tax Report, please contact your local tax advisor.

Below are examples of the differences:

Background

–  Client acquires 3,000 shares of Company X through six different purchases

–  Client closes all positions in 2020 before the end of the tax year. The asset balance at the end of the tax year 6.4.2019–5.4.2020 is, therefore, zero.

Account Statement logic

– Calculations are in USD

– Client can choose which opened position to close

UK Tax Report logic

– Calculations in GBP — calculated on the opening and closing dates

– Specific British consumption logic applied as relevant (e.g., “Same day” rule, “bed and breakfast” rule and average price rule or LIFO).

Account Statement Flow & Capital Gains

  • Sell 03.01.2020: The client chooses to close the first three purchases in 2020 with the sell on 03.01.2020.
  • Sell 06.01.2020: The client chooses to sell 500 pieces from the purchase on 03.01.2020.
  • Sell 07.01.2020: The client chooses to sell all the remaining pieces from the purchases on 03.01.2020, 05.01.2020 and 06.01.2020.

Tax Report Flow & Capital Gains

  • “Same day” rule: Sell 03.01.2020: For the sell of 3,000 pieces, the same day rule and the bed & breakfast rule are applicable. The first 2,000 pieces of the sell will be matched with the two purchases which occurred on the same day.
  • “Bed & Breakfast” rule: The other 1,000 pieces will be matched with the purchase on 05.01.2020, due to the bed & breakfast rule.
  • “Same day” rule: Sell 06.01.2020: The sell of 500 pieces will be matched with the purchase of 1,000 pieces on the same day due to the same day rule.
  • Average price rule (‘Section 104 Holding’): Sell 07.01.2020: The sell of 2,500 pieces will be matched with the remaining shares in the pool since there was no purchase on the same day or in the next 30 days.