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LTI,
"And yet again - have you nothing new to say?"
The Dow will lose + 50% from it's present peak during Biden' Presidency , whilst he ends US Dollar supremacy .
Don't insult our intelligence 2 yrs down the line telling us you sold all on a peak ! I've called you a Walter for yrs !
T
21 Jan 2022 20:08
''LTI you are a remarkable investor.
The buy at 40.7p on 9th March 2020 you did note down''.
Good that you went to so much trouble scrolling back for 30 mins to find that I had posted my purchase of Lloyds on the 9th March - must have been disappointing to you that it was there.
So to clear things up (I have had a look myself.)
I bought a few Metro on the 9th March 2020 from SB profits.
Following posts about the level of the market it was clear that I had started to put big money into the market - hence Lloyds being one of them.
Post back if you disagree with this, with references to a post suggesting otherwise.
What you did to link a Metro purchase to market purchases, wasn't good was it?
Just adding a disclaimer. I'm not an accountant, so before you take any actions, either DYOR, or contact a professional, and confirm what I've stated in my posts. I think I'm right in what I've said, but check anyway.
"Yes, you can make a tax free Capital gain of £12,300 in any tax year."
I should have said current tax year, not any tax year.
"To be clear, the taxable gain is the bit of the gain *above* the £12,300 (for the current tax year) allowance.
Mike."
Yes, you can make a tax free Capital gain of £12,300 in any tax year. Anything over £12,300 is a taxable gain, and the amount of tax you pay will depend on whether you're a basic, or higher rate taxpayer.
fleccy,
Sorry, re my last, I think I miss-read your post before commenting. To be clear, the taxable gain is the bit of the gain *above* the £12,300 (for the current tax year) allowance.
Mike.
"fleccy,
"£12,300 to get the taxable gain"
Surely you mean "£12,300 to get the tax-free gain"?"
Once you work out your total gain, you subtract £12,300, and if it comes up with a poitive figure,that's the taxable gain. I think I'm right in what I'm saying, it makes sense to me.
"The suggestion of transferring sufficient to spouse so she can sell up to the tax limit is a very popular one."
You'll have to check, but my understanding is that shares transferred to your spouse carry over the average cost per share, so the same calculation applies. You can actually sell more than £12,300 worth of shares, as long as the gain doesn't exceed £12,300, any gain over £12,300 is taxable.
fleccy,
"£12,300 to get the taxable gain"
Surely you mean "£12,300 to get the tax-free gain"?
Section 104 hoding is basically:
"Selling shares in the same company
There’s a different way of working out your cost if you’ve sold the same type of shares in a company that you bought at different times.
You’ll usually need to work out the average cost of your shares and deduct this from what you got for them to work out your gain.
Example
You buy 100 shares for 80p each. The total cost is £80.
You later buy 300 shares for £1.20 each. The total cost is £360.
In total, you have 400 shares costing £440 - the average cost of each share is £1.10.
If you sell 150 shares, the cost of the shares for your tax calculations is £165 (£1.10 multiplied by 150). Deduct this from what you sold the shares for to work out your gain.
If you bought new shares of the same type in the same company within 30 days of selling your old ones, there are special rules for working out the cost to use in your tax calculations."
https://www.gov.uk/tax-sell-shares/same-company
"With my own share dealings which are outside my ISA, I follow the HMRC method (currently called the "Section 104" holdings) with my spreadsheets, simply because I only want to run one system, not 2 different systems in parallel."
Indeed, shares bought in the same company, over a period of time, can be sold using (Sold price x Quantity sold) - (average holding cost per share x Quantity sold) - £12,300 to get the taxable gain.
If he's planning on retirement couldn't he sell down say £30,000 a year and just pay the 10% tax on the amount over the allowance each year?
Obviously I have no idea of his personal finances/income.
No one wants to pay tax but he's saved it, might as well enjoy it especially as he's young enough to enjoy it.
I still have a load of shares from an old certificated account, thankfully I've always kept the purchase paperwork over the years.
Thanks lti.
M14
Good post
Just to clarify the £12300 per annum is the profit not the total value that’s the taxable allowance The suggestion of transferring sufficient to spouse so she can sell up to the tax limit is a very popular one.
Just as I thought thanks for confirming lti
psk
you can transfer to a spouse without CG implications to make use of two lots of allowance
Hmm, fascinating debate...
Walkersworld, I'd be a bit careful about using words such as "criminal".
There's a difference between how things are reported to the taxman (if indeed this is required), where things have to be done to one particular set of rules, and how one uses statistics to assess one's own investing performance. With the latter you are at liberty to use any method you like.
It's similar to how companies report their financial results, where there are "statutory measures" which have to be done and done in a particular way, and "Alternative performance measures", where companies can also choose to present figures in ways of their own choosing. As long as they state clearly which are which, is there a problem?
With my own share dealings which are outside my ISA, I follow the HMRC method (currently called the "Section 104" holdings) with my spreadsheets, simply because I only want to run one system, not 2 different systems in parallel. If people also want to run their own system, for whatever reason, where's the harm in that?
Mike.
Longtimeinvestor, I really don’t know why his is that bothered on selling more than £12300 a year as with the amount of shares he has the dividends alone is more than enough to finish working and have a comfortable life.
steveb
Can he not transfer some to his spouse to reduce the capitol gains?
sbk
Your friend should have kept the relevant documentation, and also the employer should have kept records of SAYE schemes etc
ww
btw you have already confessed to being a criminal.
ww
You need to explain yourself. What has my own personal share dealing records got to do with any submissions to the tax man?
Longtimeholder, wrote. “Would you know where you stand with a stock if you had made hundreds of trades on a stock over a 25 year period?”
A friend at work has about £500k in persimmon shares and all bought through the work share scheme over a very long period of time. He wants to start taking money out now as he is 55 but since he has no way of proving his average he can’t take more than £12300 out each year as if he takes more out he has been told he will have to pay capital gains.
The government has the onus on the investor to prove their average or suffer the tax bill.
Lti I don't even know where I stand over 12 months lol what I do know is I always sell for a profit not a loss