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....