Share tips thread (Vol 2)

[DoubleSix]

vulture1 said:

Yank stocks are for growth imo

Righto

[Gargamel]

Cough... Tesla !


Actually closing my loss on Nikola too. Got a bit excited in the summer and seemed to have bought them close to the peak $43....

Not back in the black yet, but closer...

Struggling to see much value elsewhere. Everything I look at seems very close to the top, which is fine if you are holding, but not great if you want to take profits and buy in to something else.

[g4ry13]

Gargamel said:

Cough... Tesla !


Actually closing my loss on Nikola too. Got a bit excited in the summer and seemed to have bought them close to the peak $43....

Not back in the black yet, but closer...

Struggling to see much value elsewhere. Everything I look at seems very close to the top, which is fine if you are holding, but not great if you want to take profits and buy in to something else.

I got into XPEV at $22 which was a peak at the time and then it took off. Bought some more the other day at $42.

I think it's got a bit more to go but could just be one giant bubble.

[tescorank]

So totally new to shares, so put 20k into tesla and now worth 50k, so thinking of removing the £20k stake and just leaving the profit there, so effectively no tax liability or am I wishful thinking...?

[p1stonhead]

tescorank said:

So totally new to shares, so put 20k into tesla and now worth 50k, so thinking of removing the £20k stake and just leaving the profit there, so effectively no tax liability or am I wishful thinking...?

Did you do it in an isa?

[tescorank]

No

[Burwood]

your realised profit is 20/50 X 30 (50-20)=12k. It is taxable. Talk to your account or use an online calculator as your income dictates how much you pay, if anything.

[Gargamel]

https://www.fool.co.uk/investing-basics/how-shares...

This might help

[Gargamel]

Burwood said:

your realised profit is 20/50 X 30 (50-20)=12k. It is taxable. Talk to your account or use an online calculator as your income dictates how much you pay, if anything.

Surely it would be CGT not income

[Luke.]

Gargamel said:

Burwood said:

your realised profit is 20/50 X 30 (50-20)=12k. It is taxable. Talk to your account or use an online calculator as your income dictates how much you pay, if anything.

Surely it would be CGT not income

Income dictates which CGT bracket he would fall into.

[tescorank]

So if bitcoin doubled and you took your initial stake out would that be a profit?

[Burwood]

tescorank said:

So if bitcoin doubled and you took your initial stake out would that be a profit?

Yes. Each year you have a cut allowance of 12k so you may not have to pay any tax. It depends on other gains, if any

[bad company]

Burwood said:

tescorank said:

So if bitcoin doubled and you took your initial stake out would that be a profit?

Yes. Each year you have a cut allowance of 12k so you may not have to pay any tax. It depends on other gains, if any

That CGT allowance may well be cut so best use it this year I’d say.

[i4got]

Well I've learnt something new. I had thought if you only withdrew your original investment, then CGT only kicked in when you took the next withdrawal (ie the first bit of actual profit)

[Burwood]

i4got said:

Well I've learnt something new. I had thought if you only withdrew your original investment, then CGT only kicked in when you took the next withdrawal (ie the first bit of actual profit)

Sadly not. Anything you sell, save for a few explicit assets are taxable based on buy price and sell price. What tax you pay will depend on your other income/basic tax rates etc. But you currently won't pay more than 20% over the tax free allowance for CGT and possibly a lot less . There are 18% brackets and 10% depending on other income.

It's an area that will almost certainly be looked at by Sunak in the Autumn budget.

[ferrisbueller]

Burwood said:

i4got said:

Well I've learnt something new. I had thought if you only withdrew your original investment, then CGT only kicked in when you took the next withdrawal (ie the first bit of actual profit)

Sadly not. Anything you sell, save for a few explicit assets are taxable based on buy price and sell price. What tax you pay will depend on your other income/basic tax rates etc. But you currently won't pay more than 20% over the tax free allowance for CGT and possibly a lot less . There are 18% brackets and 10% depending on other income.

It's an area that will almost certainly be looked at by Sunak in the Autumn budget.

I fear he's going to align the rates with income tax from '21 onwards.

[Burwood]

aye-harsh but can see the logic in it.

[Shnozz]

Burwood said:

aye-harsh but can see the logic in it.

Just a shame you can’t offset loss making years against your tax.

[Burwood]

Shnozz said:

Burwood said:

aye-harsh but can see the logic in it.

Just a shame you can’t offset loss making years against your tax.

You can offset losses in one asset against gains in another and carry any remaining loss forward to offset against future capital gains. You can't offset against income. Not yet anyway

[HarryW]

Shnozz said:

Just a shame you can’t offset loss making years against your tax.

Assuming we are talking share dealing etc.

You can carry forward losses into future capital gains years though. They can in theory be rolled forward indefinitely.


Edited to add, you cannot roll back losses though. You have to declare it and then you can roll it forward.

Obv the losses have to be real auditable losses not paper ones ??

Edited by HarryW on Friday 20th November 13:15