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

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  • doobrey
    replied
    Originally posted by cuttingman View Post
    rebuy in the new financial year?
    FWIW some assets seem fairly bubbly to me at the moment. Bitcoin most obviously. And US tech.

    Originally posted by Gordon999 View Post
    90% of investors fail in the stock market.
    Buy and hold is generally successful. Stock markets have a strong tendency to produce positive returns long term.

    Leave a comment:


  • Gordon999
    replied
    Originally posted by Section20z View Post

    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
    https://www.thisismoney.co.uk/money/...long-term.html

    This report shows 90% or more people are unlucky investing in the FTSE-100 over the last 20 years.

    But 90% of people holding property over last 20 years would have won investing in their property

    Leave a comment:


  • Flashback1966
    replied
    Originally posted by Section20z View Post
    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
    The FTSE100 is flawed, because it measures the top 100 companies. However, if a few companies, drop out of the FTSE100. You have to sell those stock and buy the new stock. I don't know how frequently, they change the FTSE100.

    An FTSE 100 index fund might be better for that.....



    Leave a comment:


  • pebblepebble
    replied
    Originally posted by Gordon999 View Post


    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.
    I have been following a post on another website about changing percentages held on a property for CGT reasons as we want to do similar with ours when we sell. A Chartered Tax Adviser has said that if you make a change with the primary motive being tax then it comes within the scope of anti-avoidance. This would apply to shares too.

    However I would have thought this was tax planning and I'm not sure why it would be allowed in the first place (ie. transfers to spouse) if they didn't expect people to use it to their advantage. And I would think majority of reasons to do such transactions would be related to tax.

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  • boletus
    replied
    Originally posted by Section20z View Post
    I'm obliged, I should have said invest £282500 then to be accurate.
    I'm in agreement with the gist of your earlier post, you just picked the wrong index over the wrong time frame!

    The S&P500 over the same time averaged about 15% per year not including dividends.

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  • Section20z
    replied
    Originally posted by boletus View Post

    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
    I'm obliged, I should have said invest £282500 then to be accurate.
    But the article simply referred to common theories and nowhere stated that 90% of people "fail" , what may be true is that 90% of investors lose money, which I'm sure is true for us all (on some investment at some point ).

    Leave a comment:


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

    Leave a comment:


  • boletus
    replied
    Originally posted by Gordon999 View Post

    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.

    Leave a comment:


  • boletus
    replied
    Originally posted by Section20z View Post

    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

    Leave a comment:


  • jpkeates
    replied
    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.

    Leave a comment:


  • Gordon999
    replied
    Originally posted by jpucng62 View Post

    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

    Leave a comment:


  • Gordon999
    replied
    Originally posted by pebblepebble View Post
    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.

    Leave a comment:


  • jpucng62
    replied
    Originally posted by Gordon999 View Post
    90% of investors fail in the stock market .
    Where did you get that from? I think its rubbish - I do very nicely thank you

    Leave a comment:


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

    Leave a comment:


  • Section20z
    replied
    Originally posted by Gordon999 View Post

    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

    Leave a comment:

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