How Do I Pay For Taxes for My Profits on Etoro in the UK?
You have made profits on your investments on your eToro account. But now how do you pay tax on your eToro profits? This article explains how.
Published November 30, 2021.
So, you made profits on your Tesla trade, you made some money from your bet on Shiba Inu, and your "set-it-and-forget-it" strategy for an index fund paid off.
You have now all this profit to ring in the new calendar year.
Well, nobody likes to be the bearer of bad news, but you now need to begin paying tax on eToro profits.
But how do you pay tax on eToro and give it to the British government?
How Do You Pay Tax on eToro?
As eToro states, it is up to its clients to determine and pay any applicable taxes in the United Kingdom (or any other country of tax residence) on profits earned on the trading platform.
The best and easiest way to accomplish this eToro capital gains tax is to utilize the information from your account statement.
By using this form, you can calculate the tax on eToro UK that you will inevitably need to insert into your tax return.
Moreover, eToro could likely be mandated to give this information to Her Majesty's Revenue and Customs (HMRC).
Can You Automate the Process?
You can also automate this tax information by using tools to extract this information. Here is a step-by-step breakdown of the process:
- Hit "Portfolio" from the menu.
- Choose the history icon.
- Pick "Settings."
- Select your start and end date (you will want the entire year for the tax year you are filing).
- Click on the check mark.