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Good point Castiron, however my view is " if you need an accountant, should you really be playing the markets?"
FFS spend a few quid and talk to an accountant
GLA
Within the ISA wrapper you can buy & sell whatever stock you like with no tax penalty. HMRC are only concerned that no more than £20k pa goes into the ISA. If you transfer money from a regular share account, it must be converted to cash (shares cannot be moved, only cash) - so there may be CGT to pay. Technically, the share price may change during the time between selling shares from the regular account and buying them in the ISA but most brokers offer a "Bed & Isa" service which means the switchover is virtually instantaneous so the spread and transaction fee is minimised.
Gains and losses only occur at the point of sale. Then its the net gain for the year that may be liable for tax. So some find it worthwhile selling some stock at the end of the tax year to consolidate gains/losses and rebuy in the new year.
However the beauty of an ISA is that there's no tax to pay.
Do losses on your whole portfolio taken into consideration with profits on a single share doing well.? Also are previous years losses taken into account too..??
The risk is that you are temporarily sold out of the stock and your broker has to obtain your holding to buy it into the ISA. Could be an issue on a stock in high demand depending on the size of the holding.
Just my pennies worth ... you can also spread the risk if you have a spouse by gifting a portion of your holdings to him/her. All mine are under an ISA wrapper so are CGT exempt. I would advise the assistance of a financial/tax adviser if you are in the higher tax bracket and have large holdings. I'm retired with no income (squandering my children's inheritance) so I'm in the lower tax bracket. The advice on getting your holdings into an ISA is very sound IMHO. (BTW I am not qualified to give financial advice). Cheers Mafuta.
I've already made £16k capital gains this tax year on my fairly modest SAR holding. The SP was a mere 0.38p at the start of April. Get the "plain" shares into your trading account, and SAR etc into an ISA, before you make any more gains! Hope Monday isn't too late.
Capital Gains Tax isnt as bad as some think it might be; use the Gov calculator (scroll down the page) and have a play around.
https://www.gov.uk/tax-sell-shares/work-out-your-gain
If you are a normal rate tax payer earning say £35k a year and you purchased £20k's worth of Sareum shares and you sell them for £40k = £20k profit you you would only pay £770 in Capital Gains Tax.
(Any sale of shares including at the time of a bed and isa are liable for Capital Gains Tax apart from any gains from shares once inside an isa)
Correct
I`m no expert on this subject but as far as I`m aware and please correct me if I got it wrong, if you hold your shares in an ISA account, any gains are tax free and that includes CGT?
Sorry but your last two posts have totally confused me. In your original post you indicated that you didn't have an ISA! I think you need to speak to an Accountant rather than a chat board!
Would it. Not be possible to sell some shares within your isa eg vodaphone for an example and replace with SARS shares Within your isa
Then rebuy the shares you sold Eg vodaphone example outside your isa effectively doing a swop
Keeping it under the 12.3k profit may be difficult especially with the hopeful gains in the coming weeks.
Ive an SS Isa but have used its limits this year so CGT is a reality... tbh its a nice issue to have as the more i pay means the positove the sp has gone up
Stock, I'm no expert but you need to get your SAR into the protection of a S&S ISA ASAP! I did a few weeks back.
There is plenty of info on the net and there are limits to how much you can stash in your ISA. Your chosen broker will need to sell your holding and buy it into the new ISA. This is a tricky operation on a fast moving investment as you will need to get the best deal possible. EQI did mine and I can't fault the way they did it. You also pay commission on the deals.
Once the investment is in that ISA, you pay no CCT on your gains and you are free to withdraw your capital whenever you choose. If any of the price predictions for SAR come true, CCT will be a real issue for many holders!
DYOR but don't wait too long!
You have a CGT limit of £12,300 this tax year if you have these investments in a trading or GIA account on realised gans/losses . It would be best to place these in an ISA wrapper ( if you haven't already used your allowance this tax year ) or Pension. If you have other investments which aren't performing and you decide to sell and you also realise SAR profits then you just have to keep under £12,300.
Sar are my 3rd investment however just a question about capital gains tax on shares as am sure selling these once they hit the sky will mean a healthy profit.
Would i pay CGT if i reinvest it or buy shares into a SS ISA?
The rate is up to 20% which is extreme. I mean, we take the risk to invest which we dont get paid back if we lose... the companies all pay tax on the income from what we invest...
Any ideas how to invest profits....