Selling shares & CGT

[Henrico]

I've got a quick question on the selling of shares and CGT that hopefully someone will have experience with:

I'm looking to sell shares soon and have worked out that I will be about £15k over my capital gains allowance. I've heard of a thing called a Bed and ISA but am unsure if this will allow me to sell the shares, transfer to a Stocks and Shares ISA then sell thereby bypassing CGT on that £15K? Any ideas?

Cheers

[MyM2006]

That is a way to protect you from future gains.
It allows you to sell your shares and buy them back within an ISA which isn't liable for future CGT.

Any CGT on the original sale still applies.

[Henrico]

Ah thought as much, buggery bks. Another other way round or just man up to the tax?

[Wilmslowboy]

Transfer half to your wife ....if you have one ???

[Henrico]

Not got one at present, do you know anywhere I can get one in the next week?

[CaptainSensib1e]

Whay not sell some now, and wait until next tax year to sell the rest?

[Eric Mc]

CaptainSensib1e said:

Whay not sell some now, and wait until next tax year to sell the rest?

Can work - but there are rules in CGT to prevent the spilitting of asset sales purely to avoid tax.

[Henrico]

Problem is I'm selling for a deposit on house so need the cash now. I think I'll have to just suck it up and take the hit. Next time I'll buy shares within a stocks and shares ISA to bypass this whole thing.

[walm]

Henrico said:

Problem is I'm selling for a deposit on house so need the cash now. I think I'll have to just suck it up and take the hit. Next time I'll buy shares within a stocks and shares ISA to bypass this whole thing.

Sure but remember you can only put £15k in per person with the ISA so you need some pretty amazing gains to benefit from the shield.
Sure if you already have cash in the ISA you can do it but just for a one-off it wouldn't have helped in this case unless you 3x your money!

Is there no other way to raise the money for the deposit?
It's a hell of a hit for something you could almost entirely avoid by April next year.

[Ozzie Osmond]

Eric Mc said:

Can work - but there are rules in CGT to prevent the spilitting of asset sales purely to avoid tax.

For OP I'd focus on the "can work" side of that one!

[If OP had a spouse they could look at trying to use both allowances - not applicable here.]

And if OP owns anything else which has made a LOSS, that could be sold and the loss offset against his gain.

[Eric Mc]

The point is that he needs to go about things the right way - otherwise it will cost him.

[Ozzie Osmond]

Henrico said:

Problem is I'm selling for a deposit on house so need the cash now. I think I'll have to just suck it up and take the hit.

If you're selling £100,000 of shares and getting hit with £5,000 of tax I wouldn't fret too much about it.
But if you're selling £25,000 of shares and getting hit with £5,000 of tax I'd look at borrowing to tide you over to the next tax year if possible. Even maxing out credit cards might help.