Member Info for MaryBr190

Thomo1968
Sorry about the last post. A finger slip or senior moment :)

One thing I do frequently throughout the year (it depends on how your ISA is performing and free cash element within) is to realise a loss in an underperforming share outside of an ISA and rebuy the shares within the free cash element of an ISA.

Provided you feel confident of the SP price recovery over time, why not reduce current gains in excess of £12,300 by crystallising a loss in the current year and then within the ISA the reocovery back and hopefully past your breakeven is tax free.

eg (by way of illustration) - this assumes you have gains you need to reduce

i)
In an ISA subcribed over 2 days straddling a tax year on 5 Apr 20, 20k on 6 Apr 20 - actively traded to over 84k with around £40k cash available to invest, balance in stocks.

ii)
Funds and Share - a mistimed purchase, say GSK BP. (we all have them). Bought in tranches and sitting with a paper losses

It is perfectly possible to use the funds to buy a similar amount within your ISA and then crystallise the loss in the 20/21 tax year to use to reduce any capital gains throughout the current tax year. If you can time it right, your may actually trade to cover the stamp and broker fees too.

The end result is you have reduced gains in the current year, hopefully recover the paper loss in the ISA and then merrily trade on.

I have cut my 2020/21 CGT bill significantly this year as I did this with BP. near its low and the SP recovery and the gain is now in the ISA. I am well above breakeven and the SP recovery supercharged my ISA.

This can be repeated as long as the cash element within the ISA allows and the SP in the product recovers.

Some day I hope to be 100% invested in an ISA and a small amount in a F&S but I am not there yet (due to the 20k per year subscription.

Amazing how it works if you apply military precision.

Each year I aim to have enough losses (transferred and recovered) to eliminate any CGT tax payable outside of an ISA.

Thomo1968

Thomo1968
I agree.
HL downloads are staighforward can be downloaded easily into , by tax year or by individual shares if you have a small number (in Fairy's case - it seems 3 - RR. IAG and BP.). You need to be able to work competently with a spreadsheet, but most people can pick it up quite easily.

Fairy1
If you can somehow pass me your email I am happy to look at your trades (a one off for Fairy only), match and work out your matches and gains so your S104 pool going forward contains the correct info for when you hit the big time.
I can also add notes to explain and that way it will be sorted in private. I enjoy this as much as Suduko. It can seem quite daunting trying to keep on the right side of HMRC but it is relatively straigforward once you know how.

You too. Don't be put off with asking a query as many are happy to try to help. The discussion has probably been useful to many, including me, as I picked up information that will assist me in my endeavors to help. Good luck to you as you are certainly doing well at the moment by most peoples standards.

You are welcome.
Well done on your profits.
Without revisiting all your posts, you seem to be well under the tax free allowance and seem to be fretting for nothing. At that level you do not need to report the trades on your self assessment.

Per HNRC
Capital Gains Tax allowances
You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount)
The Capital Gains tax-free allowance is:
£12,300

I cannot recall if your funds are in a share ISA. If so you have no tax to pay and no reporting. If not you should consider using one.

With HL, set up in a few minutes. You still would have time to move 20k worth before 05.04.21 and 20k on 06.04 21 to protect 40k in a tax free wrapper.

Most accountants would be as confused with the rules as they may not deal with this normally. I wish there was some way I could see your trade summary (do not post it here) as it is not as difficult to work out.

This week I intend to road test the calculator tool that was posted in this thread.

Finally, this is not this right forum to post these queries as the BP. guys will get impatient.

Let's see a consolidation at these levels and a less benign price action.
As we know, the 8am minute or two gives unbelievable opportunities.
DYOR

At the point INFA is a boom or bust. The former for me. I understand the frustration for long term holders of the jam tomorrow approach.
Local protest group ain't no swampy.

Boom or bust, we will know soon enough.

I like Victoria in small doses but no thanks. Too righteous and woke. Her IOC stint showed her
They are missing a beat .
I think Lorraine should step up and take over from 6am. Or perhaps give Nicola Sturgeon a chance to shine. Or could Megs or even the lovely Schof be teed up as the new Queen of breakfast tv.
Like him or loathe him, Morgan saved the program from obscurity. He is going to be hard to replace. He brought in the stars. GMB has been floundering this week.

Here is an idea.

IAN DALE.

Can be read in many ways.Your choice.
A Sell everything, as a contagion spreads and sell off sharply. Lloyds drops
B Funds out temporarily from NAQ stocks and rotate straight in to non tech. Lloyds rallies.
C Tech stocks, high multiples dislike long term bond
1.6+ rises and correct. Banks rise in anticipation of rate rises improving nargins

There is no right answer to this.
GL if you are making a few £
All relative to your funds and risk profile and how long you hold.
If it works for you then great.
I trade both
Just be careful you do not overreach near a short term top if you are not able to hold the position.

Who knows what twists and turns are ahead with covid, lockdown, market corrections and maybe vaccines proving ineffective to variations.

However, as night follows day, you will get whiplash in travel and hospitality stocks when the market decides full steam ahead and FOMO takes off.

You may well be right in your view, but averaging in on to add to my core holding works for me. I would rather be in these stocks than totally out.

DYOR & GLA

A) Re ISA maxed out at 20k.

20k is currently the maximum annual subscription to an ISA. Once invested you can trade as little or as often as you wish to. Hopefully with gains rather than losses. My aim is to expand the 20k as much as I can each year. As long as the cash is not withdrawn from the ISA, it remains available for tax free investing.

(This can even be useful to have available (particularly is you have a sizeable paper loss in a share outside an ISA which you need to crystallise to offset non ISA gains in excess of your 12300 allowance)

B) i was confused by your discussion on Stamp duty.
To clarify :
Re Purchases : stamp duty and broker commissions are dealing costs and are allowable costs for CGT.. So your share purchase price, added to your s104 pool is the total of the whole contract.

Re Sales : it is the price x quantity (before commission is taken off) which is used for the capital gain proceeds. The selling commission is brought into CGT calculation as an additional cost, but does not go to the s104 pool.

Your Share ISA is ignored for CGT purposes. Net gains and any dividend income earned is tax free for CGT.

(However the value in an ISA is subject the IHT so HMRC will try a grab a cut from your estate... unless of course you enjoy spending it before you go.)

Fairy re HL.
If you can work with a spreadsheet, you can download the basic data in a few minutes. This can be done, by tax year, for all transactions. It can all be done by tax year by each company. That gives you the data into excel via download. If you cannot work with a spreadsheet an alternative would be to print a pdf by tax year if each share. This is only a starting point but it gives you the raw information easily.

What volume of trades have you done in the year to date? and how many companies? Just trying to get a feel so I can answer more relevantly.

The £12,300 CGT allowance is for gains from all sources, not just shares so bear in mind if you have any other gains.

Re S104
This should be useful. Copy it to your browser rather than click and it should work. Choose... Example3 (2020)

https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet

As a holder, if a right issues needs done, just bite the bullet. The sooner the RI is done, the sooner the uncertainty ends. It will put it on a sounder footing as the recovery gathers momentum. Market believes this was undervalued sub £2 and the SP recovery will give the BoD cover to move. The contract writedowns will create but of indigestion. 80p 10 for 3 Rolls Royce style perhaps ? Who knows? After recovery £4 SP.

Dyor & gla.

What you have copied from HMRC is indeed correct. You seem to have misinterpreted the wording.

My understanding is that the gain from your share account (assumed to be non -ISA) is subject to CGT. If you have bought and sold the same class of share, you may need to apply matching rules to calculate the gain. IF your total gains for the tax year are below £12,300, there is no CGT to be paid.

(a) PER HMRC
What you pay it on:
shares that are not in an ISA or PEP

Therefore the sale from your non ISA share account is a disposal for CGT. (as it is not protected in a tax free wrapper)

(b) PER HMRC
You also do not pay Capital Gains Tax when you dispose of:
shares you’ve put into an ISA or PEP

This refers to shares when they are subsequently sold from your tax wrapper. It does not refer to the disposal prior to entering in this case your SIPP.

I trust this distinction is clearer.

Agreed.
Quite content to hold my core at these levels.
Held on to a large part of the rise from our entry.
Ex Div next Thurs

Pick up the dividends and add on weakness or post ex div drop is my plan.
All in an ISA where possible.

Have a great weekend.

Good luck then.

It seems the ML is unlikely now.
Expecting a lot of spin.

That usually means a buy for me :)

Free fat cat allocation is my read.

Cost to CEO of £0.00 also CFO picked up some too.

Award of Restricted Stock Units under the Spirent Communications plc Deferred Bonus Plan.

Can I have some at £0.00 too?

Anyone else doubling up at these levels in a leap of faith?