Share Dealing Discussion Area

turbobob · 15 March 2010 at 12:38PM

The HMRC website states the 30 day bed and breakfasting rule "prevents you making a gain or loss on shares you've sold and bought back almost immediately". http://www.hmrc.gov.uk/cgt/intro/glossary.htm#b

This suggests that selling and then re-buying the same shares within 30 days is effectively treated as if it never happened (for CGT purposes). To be on the safe side you would be best checking with them or some other qualified person regarding what you plan to do.

Rank_90 · 15 March 2010 at 12:47PM

The other thing you need to be aware of is that you need to confirm its all profit. You can write your losses off agains your tax bill too so bear that in mind.

But your right just buy more shares and your covered.

BTW if your looking for a new share:

share-exchange.com just released a new link to GDP

goldplat.com/docs/research/WHI_GOLDPLAT_260210.pdf (add the www's in at the begining)

looks like a great investment to me. I'm just looking at how to get in.

All the best.

Just_landed wrote: »

Thank you for your thoughts I will tell a bit more, I sold some shares hoping to buy back in cheaper but true to form they just keep going up. I have ended up with more than £10100 CG so I was hoping to drag that part of the profit into 2010/2011 tax year. so by reducing CG back below £10100.

tradetime · 15 March 2010 at 12:50PM

I believe the rule is designed to prevent you from eliminating a tax obligation simply by slight of hand.
Example as we trundle into end of tax year you have realized profits of £20k, well above the £10k allowance, however you also hold an unrealized losing position which is down £10k currently, you believe this position will come good and have no intention of realizing your loss on it, however, if you can "turnover" the position quickly, like sell on the 4th of April and buy back on the 6th, you could book the loss against your taxable amount, thereby eliminating the tax, and still be long the position at about the same price for when it recovers.

Biggles · 15 March 2010 at 1:22PM

tradetime wrote: »

Example as we trundle into end of tax year you have realized profits of £20k, well above the £10k allowance, however you also hold an unrealized losing position which is down £10k currently, you believe this position will come good and have no intention of realizing your loss on it, however, if you can "turnover" the position quickly, like sell on the 4th of April and buy back on the 6th, you could book the loss against your taxable amount, thereby eliminating the tax, and still be long the position at about the same price for when it recovers.

That's the 'old' 'bed & breakfast' rule, which was superseded a few years back.

Unfortunately, that procedure wouldn't eliminate the tax, as the current '30-day rule' means that the proceeds of the sale on 4 Apr would be counted as a disposal of the shares you then purchased on 6 Apr, leaving you with very little gain or loss and still holding the shares at their original cost:-

Shares acquired within 30 days after selling
The next step is to match the shares sold with shares acquired in the 30 days after the sale or disposal. This is the ‘bed and breakfasting' rule. If you haven't bought any shares within 30 days of the sale, you then look at shares bought at any other time.

tradetime · 15 March 2010 at 1:25PM

Fair enough, I personally leave such detail to an accountant to sort out.

--Tony-- · 15 March 2010 at 10:35PM

When will the guide be updated?

It says it will be updated shortly and that was June 2009

Rank_90 · 16 March 2010 at 5:04PM

Guys did anyone check out share-exchange.com I keep saying check it out but I get no response. Anyone had a look?

al123be456rt789 · 17 March 2010 at 12:22AM

Help needed. I'm new to share dealing. I have a few hundred shares (paper certificates) in a US company. In November I opened a nominee account with my bank's share dealing service and sent them the certificates along with the other required forms. Now, in March, they are telling me they can't get the shares into the account because "they won't settle in Crest" It's a long story and I'm making a complaint.

Given the situation that exists, how do I deal with these shares? Basically I want to sell them (but not immediately as they have dropped substantially from the price I would have been able to sell them if the bank had not cocked everything up!) Is the bank (no names...yet) right and some shares are difficult to get into electronic form, or are they covering their backsides and its not difficult at all. If the latter, which company would you suggest for the dealing?

Rank_90 · 17 March 2010 at 11:19AM

I would suggest Barclays, they have an excellent support team. I would even ring them to see if they can help you out 08457 77 77 00. I would imagine you would need the holdings transfered to them. Give them a ring they would be the best to advise in my opinion.

Hope that helps.

al123be456rt789 wrote: »

Help needed. I'm new to share dealing. I have a few hundred shares (paper certificates) in a US company. In November I opened a nominee account with my bank's share dealing service and sent them the certificates along with the other required forms. Now, in March, they are telling me they can't get the shares into the account because "they won't settle in Crest" It's a long story and I'm making a complaint.

Given the situation that exists, how do I deal with these shares? Basically I want to sell them (but not immediately as they have dropped substantially from the price I would have been able to sell them if the bank had not cocked everything up!) Is the bank (no names...yet) right and some shares are difficult to get into electronic form, or are they covering their backsides and its not difficult at all. If the latter, which company would you suggest for the dealing?

prudryden · 17 March 2010 at 12:55PM

You could try Charles Schwab. They only deal in US shares. It could be your shares can only be put into a nominee name by going through the transfer agent, which is probably in the US. It may be too expensive for your broker to do this as they MAY need a medallion guarantee on your signature. That in itself is costly.

Share Dealing Discussion Area

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free