Capital Gains Tax

[R1 Loon]

I've done a little reading up on this and was amazed to see that taper relief has been abolished with effect from 2008, which shows how up to date I am. I've just paid a small fortune out in CGT form 2009/10, but this was expected as I was playing with bank shares short term, but want to avoid a similar situation in 10 - 15 years time.

I've got a few quid invested at the moment and whilst I want to leave it longer term, I also don't fancy the idea of a hefty bill in 10 years time. So I've put some thought into how to fully utilise my tax allowances and was working through the process below.

1. Sell some shares to a profit of £20,200 (joint account)
2. Fill up the year's ISA (already done for this year) with the same shares almost immediately with one in each name (wife & me)
3. Repurchase shares almost immediately afterwards (I'm not bothered about seeing if they drop back, just don't want them to run off into the distance price wise)
4. Keep doing this over and over again as the years go by

So here's the questions

• Does this make sense?
• What are allowable expenses? Is it the dealing charges? I'm assuming that Stamp Duty isn;t an allowable expense?

I know I'll suffer a dealing charge, but that's almost irrelevant at £10 and will also pay 0.5% Stamp Duty on the repurchase, but can live with this too if it gets rid of a big bill down the line.

[Biker's Nemesis]

Do you want some finical advice from me?

[Eric Mc]

Capital Gains Tax rules have changed radically three times in less than two years. God knows what they'll be in 10-15 years time.

[jon-]

Biker's Nemesis said:

Do you want some finical advice from me?

Sell gold, buy fur!

[anonymous-user]

R1 Loon said:

1. Sell some shares to a profit of £20,200 (joint account)
2. Fill up the year's ISA (already done for this year) with the same shares almost immediately with one in each name (wife & me)
3. Repurchase shares almost immediately afterwards (I'm not bothered about seeing if they drop back, just don't want them to run off into the distance price wise)
4. Keep doing this over and over again as the years go by

So here's the questions

• Does this make sense?
• What are allowable expenses? Is it the dealing charges? I'm assuming that Stamp Duty isn;t an allowable expense?

One key point here is 'almost immediately.' Currently you are advised to sell one day and buy back the next day, otherwise it can be shown that you did not actually make the disposal

Here is the hmrc guidance note: http://www.hmrc.gov.uk/MANUALS/cgmanual/cg13370.ht...

[R1 Loon]

JPJPJP said:

One key point here is 'almost immediately.' Currently you are advised to sell one day and buy back the next day, otherwise it can be shown that you did not actually make the disposal

Here is the hmrc guidance note: http://www.hmrc.gov.uk/MANUALS/cgmanual/cg13370.ht...

Cheers, a day isn't a problem.

Biker's Nemesis said:

Do you want some finical advice from me?

If you could spell financial that'd give me a bit more confidence

Told you to get some of those bank shares in Jan 2009

[Biker's Nemesis]

R1 Loon said:

JPJPJP said:

One key point here is 'almost immediately.' Currently you are advised to sell one day and buy back the next day, otherwise it can be shown that you did not actually make the disposal

Here is the hmrc guidance note: http://www.hmrc.gov.uk/MANUALS/cgmanual/cg13370.ht...

Cheers, a day isn't a problem.

Biker's Nemesis said:

Do you want some finical advice from me?

If you could spell financial that'd give me a bit more confidence

Told you to get some of those bank shares in Jan 2009

True, oh bugger, never mind.