Help/Advice regarding CGT allowance and Lloyds Open offer

ronniemould

I currently hold some Lloyds share which are currently around £5k up on my purchse price - I wanted to know if I was to sell these and rebuy sameday would I be able to claim that i had actually taken the profit this year and use it against this years capital gain allowance?

The second part of this question is if I was to do this would it effect my eligability to take part in the Lloyds open offer as if it did I'd probably end up better off holding the shares and taking the hit on CGT next tax year

Rafter

This practice is called 'bed and breakfasting' and details are here:

http://www.taxationweb.co.uk/tax-articles/capital-taxes/cgt-and-share-disposals.html

It is now harder to do, but can still be done, particularly if you are married and can get your wife/husband to repurchase the shares in their name.

Not sure what the dates are that you need to be holding the shares for the Lloyds offer - you probably need to check the prospectus.

A good stock broker should be able to advise you about your options too.

R.