CGT sell whilst under the £12,300 allowance and rebuy in April?

[cuttingman]

I have some shares and crypto which have increased in value. Does it make sense to sell it whilst under the £12,300 allowance and rebuy in the new financial year?

My logic is if I sell and make £10,000 profit I pay no CGT. Then rebuy in the new financial year and hopefully make £10,000 next year and sell again with no CGT. Whereas if I keep it for 2 years and make £20,000 profit, £7,700 will be taxable.

And capital gains is not income so it wouldn't affect child benefit right?

[theartfullodger]

Could you please tell us what the rules will be in future when you eventually sell? We know what they are now, but I've mislaid my crystal ball.....

[AndrewDod]

Yes artful but he does know what the rules are now. So yes it is sensible to sell now. But there are rules about bed and breakfasting (you can't buy back the same thing straight away or within some time-period). Read it up.

[cuttingman]

I assume the pattern would continue: https://assets.publishing.service.go...6/Table_A1.pdf

I guess this would be great if you could sell and buy your own BTL or change ownership between spouses to take advantage of the allowance each year.

[JK0]

My accountant told me that 'bed & Pep' was the new trend. Presumably 'bed & isa' now?

[Gordon999]

I have some shares and crypto which have increased in value. Does it make sense to sell it whilst under the £12,300 allowance and rebuy in the new financial year?

My logic is if I sell and make £10,000 profit I pay no CGT. Then rebuy in the new financial year and hopefully make £10,000 next year and sell again with no CGT. Whereas if I keep it for 2 years and make £20,000 profit, £7,700 will be taxable.

And capital gains is not income so it wouldn't affect child benefit right?

Sounds correct , no CGT to pay if your capital gains are below the annual allowance.

But what is the secret to making £10K profit each year ? 90% of investors fail in the stock market .

[Section20z]

Sounds correct , no CGT to pay if your capital gains are below the annual allowance.

But what is the secret to making £10K profit each year ? 90% of investors fail in the stock market .

No secret, simply invest £200,000 across the whole FTSE100 and you would have made substantially more than £10k per year across the last 20 years.
90% of people must be either very stupid or very unlucky

[pebblepebble]

As AndrewDod says there are special rules if you sell and buy back within 30 days.

[jpucng62]

90% of investors fail in the stock market .

Where did you get that from? I think its rubbish - I do very nicely thank you

[Gordon999]

As AndrewDod says there are special rules if you sell and buy back within 30 days.

Found this posted on Motley Fool website:

The purpose of these ideas is to realise a gain or loss on shares by selling, but retaining ownership where you wish so to do. The object is to raise the base cost of the shares by utilising the annual exemption in order to mitigate the CGT on ultimate disposal, or possibly to create a loss to set off against other realised gains in year.

This process used to be called bed & breakfast prior to the change in the law way back in 1998. Bed & breakfasting was used to sell a share and repurchase it the next day, with only a small risk of the market going against you.

The 30-day rule ended this practice. Now, over 30 days has to elapse between the sale and purchase in order to have the desired effect. Otherwise, you’re treated as though you never sold them. Selling shares and buying them back 30 days later is less desirable since the shares could move significantly against you while you’re waiting.

Not surprisingly, new techniques have evolved to get around the rules. The most obvious is to make use of that most useful taxation tool — the spouse. You own the shares solely, sell them in the market (creating the gain), your spouse simultaneously repurchases in the market to avoid price movement and later transfers the shares back to you (if that’s desirable), which can be done in effect at the repurchase price remember.

[Gordon999]

Where did you get that from? I think its rubbish - I do very nicely thank you

What your method to make profit from shares ?

https://researchandranking.com/blog/...oney-in-stocks

[jpkeates]

Trading in bitcoin is unregulated and I can't imagine the Bed and Breakfast regulations apply.
It's an investment that is pure speculation, though, and the price volatility and cost in fees makes the transaction less attractivee.

[boletus]

No secret, simply invest £200,000 across the whole FTSE100 and you would have made substantially more than £10k per year across the last 20 years.

Not quite.

FTSE100 was at 6250 points 20 years ago, it is 6500 today (approx).

£200,000 over that time would have returned about £7K per year because of the dividends;

https://www.cazenovecapital.com/uk/f...ithout-moving/

if you include dividends the index has actually returned 3.54% a year

[boletus]

What your method to make profit from shares ?

https://researchandranking.com/blog/...oney-in-stocks

I think that article is referring to people actively day trading.

I've averaged 7% pa over 20+years from drip feeding into the major shares indices.

[jpkeates]

It looks like day trading in India - about which I know zero.