Declaring Market Value of Investments

[Chorlton]

Hello All,

I recently read an article that stated that investments identified as trading stock should be valued at their Current Mrkt value each year for Tax purposes.

Where the result is a profit compared to the previous year, one would have to pay income tax on those profits. In comparison if a loss was identified these could be declared as losses.

My question is:

(i) is the above statement 100% correct and does it apply to anyone with trading investments?

(ii) If so, then in my own situation if I hold equities for over a year, does this mean that I have to value them by declaring their current Market value each year for Tax Purposes, even though I have not sold them yet and thus not yet realised any actual gain/loss?

Sorry but I'm a bit confused...

Thanks in advance....

 

[Trembling Hand]

This is a long way away from an authoritative view but you should be signed up for the simplified tax reporting? I think somewhere deep in my fuzzy brain you don't have to account for trading stock?

Boy I'm really not sure about this but maybe a line of investigation for you.

DYOR blah blah.