RE: Flying7 Mar 2025 22:34
"If the bt shares you bought are not in an I.S.A. then you will be hit with divi tax as well"
It's Capital Gains tax when you sell shares giving a profit Daniel, not divi tax, but you can offset Capital Gains with Capital Losses. We made two trades on the 5th March, the Lloyds trade gave a capital gain of over £32,000 and the other trade, Vodafone, made a loss of around £30,000. I wasn't going to share the Vodafone trade, but I thought I might as well since you brought up tax liabilities.
05 Mar 2025 SELL VOD LSE 35,805 69.01 24,697.60 21S2849
That particular batch of Vodafone shares were purchased a long time ago at an average price of 154p, so were showing a loss of over £30,000, whereas the Lloyds shares sold on the same day had an average purchase price of just over 50p and gave a capital gain of over £32,000 when sold at 74p; The overall total capital gain on those two trades came to £2,357.58, which is below the 2024/25 capital gain allowance of £3000.00. These trades were about tidying up more than anything else, since they were part of my wife's holdings in her standard share dealing account. Selling the Lloyds shares and the Vodafone shares allowed us to wipe out the loss on that particular batch of Vodafone stock, and realise a tax free capital gain by selling some Lloyds stock in the same tax year. We decided to reinvest £107,000 from the sales to top up her BT holding and £20,000 will be going into the ISA's.
As far as the £535 (0.5%) stamp duty, that's just the cost of making trades and is insignificant in the scheme of things. To be honest we don't fret about capital gains and losses, it's about the annual dividend income, although I wont sell at a loss unless it can be offset with a gain from a different stock.
As far as our remaining holding we now own 158,334 BT shares, 75,859 Vodafone shares and 309,599 Lloyds shares, so it isn't that we've fell out with Lloyds and Vodafone, as I said it was simply a tidy up.
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