Discussion
Following a compensation claim several years ago I now have a stock portfolio that has to be sold to pay for care costs.
If sold today, this would mean I would pay in the region of £90,143 tax (CGT), which is based on having a full annual CGT allowance.
I guess my question is, is there ever a good time to sell a portfolio? Should I dispose of it all in one go or over a couple of years?
Interested in people's thoughts. I'm a basic rate taxpayer.
TIA
If sold today, this would mean I would pay in the region of £90,143 tax (CGT), which is based on having a full annual CGT allowance.
I guess my question is, is there ever a good time to sell a portfolio? Should I dispose of it all in one go or over a couple of years?
Interested in people's thoughts. I'm a basic rate taxpayer.
TIA
You'll find the tax is almost irrelevant and your decision should be driven by investment decisions. Don't let the tax tail wag the investment returns dog.
As a basic rate taxpayer you'll surely want to phase any selling to maximise use of your limited 10% CGT rate. You can't just dump the whole lot at once and expect to get away with 10% on it all.
Peripheral; but this is the last year of £12,300 tax free gains CGT allowance. Next year it drops to £6,000 and the following year to £3,000
Yes, CGT is now a pure wealth tax - i.e. a tax on inflation. You make nothing but pay tax on it!
As a basic rate taxpayer you'll surely want to phase any selling to maximise use of your limited 10% CGT rate. You can't just dump the whole lot at once and expect to get away with 10% on it all.
Peripheral; but this is the last year of £12,300 tax free gains CGT allowance. Next year it drops to £6,000 and the following year to £3,000
Yes, CGT is now a pure wealth tax - i.e. a tax on inflation. You make nothing but pay tax on it!
Panamax said:
You'll find the tax is almost irrelevant and your decision should be driven by investment decisions. Don't let the tax tail wag the investment returns dog.
As a basic rate taxpayer you'll surely want to phase any selling to maximise use of your limited 10% CGT rate. You can't just dump the whole lot at once and expect to get away with 10% on it all.
Peripheral; but this is the last year of £12,300 tax free gains CGT allowance. Next year it drops to £6,000 and the following year to £3,000
Yes, CGT is now a pure wealth tax - i.e. a tax on inflation. You make nothing but pay tax on it!
Jeepers, I wasn't aware. Glad I have a bunch of accumulated losses in that case As a basic rate taxpayer you'll surely want to phase any selling to maximise use of your limited 10% CGT rate. You can't just dump the whole lot at once and expect to get away with 10% on it all.
Peripheral; but this is the last year of £12,300 tax free gains CGT allowance. Next year it drops to £6,000 and the following year to £3,000
Yes, CGT is now a pure wealth tax - i.e. a tax on inflation. You make nothing but pay tax on it!
supersport said:
It would at least make sense to sell it either side of the end of tax year if needs to be done in one hit.
Yes, subject to investment performance. The last time I planned to take a gain there wasn't any!Whoozit said:
Jeepers, I wasn't aware. Glad I have a bunch of accumulated losses in that case
My understanding is that capital losses can't be carried forward to future years.Simpo Two said:
Whoozit said:
Jeepers, I wasn't aware. Glad I have a bunch of accumulated losses in that case
My understanding is that capital losses can't be carried forward to future years."If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If they reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year."
https://www.gov.uk/capital-gains-tax/losses
trevalvole said:
This seems to say otherwise:
"If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If they reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year."
https://www.gov.uk/capital-gains-tax/losses
Ah yes, thanks. It's carrying them back that you can't do. This is why I leave stuff like this to other people!"If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If they reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year."
https://www.gov.uk/capital-gains-tax/losses
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