Budget CGT/mid term stockmarket wobblesbed and breakfasting

[Good Plan Ted]

So Im thinking pre budget selling long standing ETFS as 50% up.
CGT may go up dramatically in the budget or a week later we have mid terms in the states which could cause a correction so then a few weeks (over 31 days) decide whether to buy the same number/etfs back or crystallise my gains, anyone with the same thoughts ?

[PhilboSE]

Crystallised some gains last week for assets I’ll definitely want to sell within the next 18 months. I’m expecting CGT to go up, but if not, it definitely isn’t going down.

[PM3]

Did same with a global tracker that was up for me about 36% and had planned to use the money maybe in about a year. Sold and then bought straight into another very similar one.

[butchstewie]

Good Plan Ted said:

So Im thinking pre budget selling long standing ETFS as 50% up.
CGT may go up dramatically in the budget or a week later we have mid terms in the states which could cause a correction so then a few weeks (over 31 days) decide whether to buy the same number/etfs back or crystallise my gains, anyone with the same thoughts ?

Depends on your plan for the money IMO.

You might be paying CGT now to avoid CGT that might not change or where if your plan was to sell down gradually you might avoid CGT (Bed and ISA to use allowances etc.).

[dingg]

PM3 said:

Did same with a global tracker that was up for me about 36% and had planned to use the money maybe in about a year. Sold and then bought straight into another very similar one.

So risked off then straight back on?

[PM3]

dingg said:

PM3 said:

Did same with a global tracker that was up for me about 36% and had planned to use the money maybe in about a year. Sold and then bought straight into another very similar one.

So risked off then straight back on?

no ....gains paid up at 18% and only further gain exposed to new ( higher ) rates coming down the line.Did not want to pay tax on gains later at a higher rate for all of it.
I did same in summer of 2024 which proved wise as those gains were taxed at 10% and not the new higher rate that the CV faker brought in .
Was never about getting out of market. after all....CGT is a tax on gain. No gains no point.

[dingg]

PM3 said:

no ....gains paid up at 18% and only further gain exposed to new ( higher ) rates coming down the line.Did not want to pay tax on gains later at a higher rate for all of it.
I did same in summer of 2024 which proved wise as those gains were taxed at 10% and not the new higher rate that the CV faker brought in .
Was never about getting out of market. after all....CGT is a tax on gain. No gains no point.

Ok understood

[OIC]

Gawd knows what the markets are going to do after Budgetmageddon.

I'm heavily in USA stocks and most of my 'investments' are at least 50% down due to the constant -ve trickle without intermittent recovery since SpaceX IPO'd in June.

Elon basically broke the USA stock market.

Stayed out of UK stocks as we're being lied to about the economy and sooner rather than later UK markets are going to have a very bad run.

Especially if comrade Andy calls a quickie election and gets anywhere near power.

At least the USA makes stuff and can recover quickly when it wants to.

We just blow smoke up our arses and pretend that anyone outside of the UK gives a st about what we do in the UK.

Big UK market crash could be the end of the sorry sthole the UK has become.

Enjoy your meal.

Bored watching nothing happen on the NASDAQ again ffs.

[MadCaptainJack]

From another topic:

MadCaptainJack said:

The likelihood of CGT going up has helped inform my decision to crystallise some gains over the past few weeks. I wouldn't be surprised if they have a bumper year for CGT this tax year, and then a drought next year.

Selling one tracker and buying another similar one to crystallise gains at the current CGT rates is smart.

[Panamax]

The US index S&P500 is still pretty much at its all-time high. Sure, that headline is driven by a few big tech companies but to avoid investing in those runs a significant risk of shooting yourself in the foot before you get out of bed in the morning. People have probably made so much gain in them that a 20% drop can be shrugged off lightly.

IMO it's not a bad idea to pay a bit of CGT from time to time, especially now the annual allowance is so pitifully small.

But beware. If you think a market drop is just around the corner, why pay tax on gains which might evaporate into the ether? In other words, your future tax bill at a higher rate of tax might be smaller than your tax bill if you pay it today.

No easy answers.

[Panamax]

MadCaptainJack said:

Selling one tracker and buying another similar one to crystallise gains at the current CGT rates is smart.

Presumably the point you are making is that the 30 day bed and breakfast rule can be side-stepped by selling one thing and immediately buying something else that's pretty much identical.

[Panamax]

OIC said:

Stayed out of UK stocks as we're being lied to about the economy and sooner rather than later UK markets are going to have a very bad run.

I'm not sure there's all that much connection between the UK economy and UK stock market. Many of the UK listed companies have a huge amount of business in other countries.

[MadCaptainJack]

Panamax said:

Presumably the point you are making is that the 30 day bed and breakfast rule can be side-stepped by selling one thing and immediately buying something else that's pretty much identical.

Yes.

[PoorCarCollector]

I've just done this with my GIA, sold my holding in VHVG and bought back into VALL (which includes smaller companies and a very low annual charge)
I plan on this being my fire and forget fund for the future and have done the same in my SIPP.

The gains since Covid have been insane, it can't continue at this rate, but I have been saying that for the last couple of years! Glad I stuck with it though

[xeny]

FT is running a story that "Healey rejects calls to equalise capital gains and income tax rates" https://www.ft.com/content/d63348fb-901d-4ff3-9cdc... which is encouraging,.,,,,,

[BumFLuff]

xeny said:

FT is running a story that "Healey rejects calls to equalise capital gains and income tax rates" https://www.ft.com/content/d63348fb-901d-4ff3-9cdc... which is encouraging,.,,,,,

He could be saying that though to stop people selling up now when really he intends to do it, I don't trust them at all.

[kiethton]

Given he's only ruled out equalisation to income tax rates it doesn't mean that it's not going up, could easily get to ~30% which is just ridiculous given there is no indexation allowance

[WayOutWest]

kiethton said:

Given he's only ruled out equalisation to income tax rates it doesn't mean that it's not going up, could easily get to ~30% which is just ridiculous given there is no indexation allowance

This. It's basically here is a big hammer I could have hit you with, then brings out a smaller hammer to hit you with.

[MadCaptainJack]

Just a little increase every budget. Like a frog being boiled.

[Panamax]

kiethton said:

Given he's only ruled out equalisation to income tax rates it doesn't mean that it's not going up, could easily get to ~30% which is just ridiculous given there is no indexation allowance

This. My bet is the old 28% rate that applied on residential property until 2024. But it could be more. As you say, the lack of indexation makes any of these into very high tax rates. A pure wealth tax - a tax on inflation.