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I raised this question about CGT a couple of weeks ago.
Just because the shares were delisted it doesn't mean they have zero value. Unlisted companies have shares issued too and they're subject to CGT.
I'm not 100% sure but the most logical outcome to me is that CGT will be relevant for profits above the value of our holding when we delisted.
So what you are saying is not only are most people going to be down from the start. But additionally we have lost the isa protection and on top of that anything we sell counts as a profit and will be taxed as such?. Wow great start it was worth the lengthy wait the bod have done us proud.
Agreed dickie3 - if we are correct then all investors on here need to understand that if you used to own BOU shares in an ISA, if you sell CIZ from tomorrow, your entire proceeds will be a capital gain as your base cost is zero. if that gain is less than £12,300 your exempt allowance covers it. If the gain is greater than £12,300 then you may have to pay CGT unless you have losses brought forward that you can use. Or you do as dickie suggests and drip feed the shares into your ISA to give them tax protection but ensure that you do not exceed the exempt allowance this year, next year, the year after etc. Bed and ISA counts as a disposal for CGT purposes. If you used to own BOU shares outside of an ISA then the cost when you bought them will count as your original base cost.
Also any CGT losses that have been filed on self assessment tax returns can be carried forward indefinitely and set off against CGT taxable gains.
Aspen
dickie3times - there is an annual investment limit on an ISA - so for some the reason to use a tax liable account is because they have more to invest. That's not me I hasten to add! My own conventional trading account was set up ages before I was able to set up an ISA and as pretty much all my portfolio is underwater at the moment there is no merit in transferring to the ISA
Hallow18...your CGT points are correct. However if your total profits in your trading account is less than £11,200 for the present tax year and you keepvit that way then no CGT is payable. One way is to bed n Isa before your share profit reaches thevtax limit or sell only enough to avoid tax.
ie i never trade in my trading account and so far this year i still have an allowance of £16,000 for my ISA.....it therefore follows that, for me i should bed n ISA all my CIZ new shares as soon as possible. Either way you do it, get them transferred as quick as possible, you will lose only a few shares but be tax free is you already are under the tax threshold.
nb, i absolutely refuse to pay CGT and my ISA has stood me in good stead since 2011.
Imo tranfer quickly just in case the shares rocket and puts you in tax liability. Or sell only enough to keep below the threshhold and simply wait till next year to sell or ISA the rest. With really big holders wanting to avoid CGT...simply sell a few each year ( or ISA ) until you have got them all out of your trading account. Sit on them.
It puzzles me why anyone is still using CGT tax liable trading accounts...stoooopid. imo
Your scenario does not take into account the original cost of the shares. When the shares were delisted, they had no saleable value, the original cost still has to be taken into account.
Aspen
Does anybody know the CGT position in respect of these shares? I think that at the point that the BOU shares were moved out of ISA accounts and into ordinary share trading accounts when the shares were de-listed that the shares were effectively worthless and therefore that the base cost of the shares for CGT purposes is zero. On the re-listing tomorrow, the shares once again become tradeable so if those shares are sold, the full value of the disposal proceeds constitutes the capital gain as the base cost is £nil. Can anybody confirm that point? If that is the case then shareholders will need to consider their CGT position, using their exempt allowance where available and being mindful that if you bed and ISA, you may trigger a capital gain which may be taxable depending on the value of the gain that you realise.