Buying / selling shares ........... and the Taxman??
Buying / selling shares ........... and the Taxman??
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Ribol

Original Poster:

11,995 posts

288 months

Monday 18th March 2013
quotequote all
Looking for some advice from those in the know on the tax implications of buying/selling shares.

Taking the following examples, assuming all bought and sold in the same 2012/2013 tax year:

I buy some shares in company A for £10k, sell them for £25k, making a £15k profit.
I also buy some shares in company B for £10k, sell them for £8k, making a £2k loss.

Would I be right in thinking that any profit comes under the 2012/2013 CG exemption (£10.6k?) - leaving the £4.4 profit from shares A to be taxed?

Shares B have made a loss, so (probably wishful thinking) can the £2k loss be offset against the £4.4k to be taxed from shares A? In other words only leaving the £2.4k to be taxed?

Many thanks in advance for any pointers on how this works smile

GTRStage1

78 posts

163 months

Monday 18th March 2013
quotequote all
Yes, correct.

Ribol

Original Poster:

11,995 posts

288 months

Monday 18th March 2013
quotequote all
What about buying / selling fees, can they be allowed for in any way for within the same tax year?

Eg bought and sold shares many times, might not have made much money but might still have paid out lots in fees?

Newc

2,195 posts

212 months

Monday 18th March 2013
quotequote all
You net off your gains and losses within the year, deduct your allowance, and pay tax on the remainder if it's still positive.

It's all net amounts after all brokerage fees.

So in your example 15k profit - 2k loss = 13k net, less 10k allowance, less any brokerage costs = tax due on 3k or so.

Ribol

Original Poster:

11,995 posts

288 months

Thursday 4th April 2013
quotequote all
thumbup thanks for the replies ........................ a bit late I know but I thought I had already done this boxedin