CGT Advice

[need advice]

Hi,

I'm hoping somebody can quickly answer this;
I started playing with shares last FY and bought two specific stocks; 1 made a £12k profit in 3 months so I sold them in the last FY. These will obviously be subject to CGT when I pay my bill in January. However, the other stock fell quite badly and I still hold them (this FY) - they are about £18k down - but I need the capital for a new venture.

Question 1 - If I sell at this loss can I write the loss over a few FY's if I don't make enough capital gains this FY to off set it?

Question 2 - Is there anyway to avoid paying the tax on the initial £12k profit from last FY because at the end of the last FY the stock was down more than £12k or do I have to physically sell them before they can be classed as a loss for CGT purposes?

PS posted under a tempory user name as this is quite personal...

[stuh]

need advice said:

Hi, I'm hoping somebody can quickly answer this; I started playing with shares last FY and bought two specific stocks; 1 made a £12k profit in 3 months so I sold them in the last FY. These will obviously be subject to CGT when I pay my bill in January. However, the other stock fell quite badly and I still hold them (this FY) - they are about £18k down - but I need the capital for a new venture. Question 1 - If I sell at this loss can I write the loss over a few FY's if I don't make enough capital gains this FY to off set it? Question 2 - Is there anyway to avoid paying the tax on the initial £12k profit from last FY because at the end of the last FY the stock was down more than £12k or do I have to physically sell them before they can be classed as a loss for CGT purposes? PS posted under a tempory user name as this is quite personal...

1. Yes - Capital losses can be carried over to offset future capital gains. You need to register the loss in the year of sale however.

2. Yes - You need to physically sell the shares to crystalize the loss. However a good broker will do you a "bed and breakfast" where you sell and buy back for a minmal charge. Effectively "rolling over" your holding

[eric mc]

I thought "bed and breakfasting" of gains on share sales had been more or less banned by the Chancellor.