Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Capital gains tax
c brown
Posted: 06 March 2018 17:27:01(UTC)
#1

Joined: 14/02/2013(UTC)
Posts: 344

Thanks: 1569 times
Was thanked: 231 time(s) in 111 post(s)
Hello All

I wonder if someone can point me in the right direction. Last year I have used my fund and share account as have maxed out my isa. I have received dividends & have growth but below the 11k cgt level on growth. Also made a loss on a share that I sold. Can I sell and re purchase into my isa & what is the best tax efficient way of doing this. Am speaking to accountant on Thursday.

Kind regards
Tony Peterson
Posted: 06 March 2018 17:40:50(UTC)
#2

Joined: 10/08/2009(UTC)
Posts: 1,252

Thanks: 775 times
Was thanked: 1580 time(s) in 649 post(s)
Simple answer.

Yes you can. It's called Bed and ISA. There's no 30 day freeze on repurchasing as there is outside ISAs. The only other option is to Bed and Spouse. Your broker may offer the former option. Mine does.

You are clearly planning a very sensible strategy.
1 user thanked Tony Peterson for this post.
c brown on 07/03/2018(UTC)
c brown
Posted: 07 March 2018 10:23:02(UTC)
#4

Joined: 14/02/2013(UTC)
Posts: 344

Thanks: 1569 times
Was thanked: 231 time(s) in 111 post(s)
Thank you Tony!
Mickey
Posted: 07 March 2018 10:33:01(UTC)
#5

Joined: 21/06/2010(UTC)
Posts: 558

Thanks: 1503 times
Was thanked: 580 time(s) in 278 post(s)
if you are with Hargreaves Lansdown they usually put a 'Bed & ISA' link on the portfolio page for this situation. The offer normally includes free sales but you pay the dealing fee on the way into the ISA. One other thing to note is that the purchase date into the ISA can take a little while rather than the first possible day, I imagine they are busy sorting the new ISA applications before finishing the Bed & ISA's but the delay is only a few days.

I imagine other company services are similarly easy to access.

ps. Just took a look at my HL portfolio page and the link to Bed & ISA is there now.
3 users thanked Mickey for this post.
Jim S on 07/03/2018(UTC), c brown on 07/03/2018(UTC), CCT. on 12/03/2018(UTC)
Mat1
Posted: 12 March 2018 00:05:20(UTC)
#3

Joined: 03/05/2017(UTC)
Posts: 11

Thanks: 7 times
Was thanked: 5 time(s) in 2 post(s)
Tony Peterson;58304 wrote:
Simple answer.

Yes you can. It's called Bed and ISA. There's no 30 day freeze on repurchasing as there is outside ISAs. The only other option is to Bed and Spouse. Your broker may offer the former option. Mine does.

You are clearly planning a very sensible strategy.


Hi Tony, can I pick your brain on a similar question?

I need to do something similar but outside of an ISA this financial year (have used all my allowance). For some reason I assumed there would be no CGT when doing a Bed and ISA :/

To avoid the 30 day rule I'm going to sell £10k SMT and buy MNKS this year then Bed and ISA the full £20k next year.

Do you see any problems with that?

Cheers
Tony Peterson
Posted: 12 March 2018 07:40:59(UTC)
#6

Joined: 10/08/2009(UTC)
Posts: 1,252

Thanks: 775 times
Was thanked: 1580 time(s) in 649 post(s)
Mat1

The share you "bed" (effectively, sell) counts as a disposal for CGT purposes. If you have gained over £11300 in total with your disposals in this tax year you would be liable for some gains tax.

The opportunity the ISA provides is simply that you can repurchase the same asset within your ISA without falling foul of the 30 day rule.

As I understand it.
+ Reply to discussion

Markets

Other markets