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How do I offset share loses with cgt

I have shares bought in 07 and 08 through sharesave and they have gone down quite a lot, my question is how can I offset these loses on any future gains. i.e if i sell shares before 5th April will i be able to offset these loses on any gains I make during 2009/2010.

Also when calculating my gain do I deduct dealing costs and stamp duty from the gain as it is an expediture.

:confused:

Thanks

Comments

  • Jake'sGran
    Jake'sGran Posts: 3,269 Forumite
    Do you really think you will be making gains soon and if so what on? Don't get me wrong I am going to invest soon and am looking at brokers.

    I believe there is a section on your tax return form to show losses and CGT but I don't think you will be able to recover the cost of selling or buying the shares.
  • tradetime
    tradetime Posts: 3,200 Forumite
    Yes as I understand it prior years losses can mitigate againts following years, not sure how that is calculated, I leave that sort of thing to accountant.
    Yes costs such as comission etc are deducted.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • mike88
    mike88 Posts: 573 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Do not forget that you have a Capital Gains Tax Allowance of £9600 in the current tax year (more next). Do you expect your gains to be greater than this in 2010? Buy shares jointly with your spouse and the allowance doubles. You can even juggle ownership of these shares between married couples to minimise tax payable. Your respective tax positions are important here. HMRC do some good leaflets which I suggest you consult on their excellent website.

    Assuming you have CGT to pay you are required to fill out a separate tax form on which there is a separate section enabling REALISED losses to be offset in up to the previous (5??) tax years. The CGT people in HMRC are incredibly helpful in my past (though not recent) experience.

    You must be doing very well (or an optimist) to anticipate gains of this magnitude in the current economic climate.
    Take my advice at your peril.
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