Another Good Reason To Open and ISA

C-dog

The latest monevator just now has prompted a little question. Hopefully you can help - http://monevator.com/get-an-isa-life/

Background
We have filled our SIPPs and ISAs for the year with enough time on the clock to open a taxable account for this years investments. Please note for the next few years, we will only be contributing to ISAs and taxable accounts as I am drawing Entrepreneurs Relief and it makes no sense to put this into the SIPP, only to be taxed on the way out. It also doesn't suit my goals.

With the ISAs filled each year, the plan is to build my asset allocation out with bonds in my taxable account. Low growth so no nasty CGT surprises when selling. However that will only be a proportion of the investments in these accounts. The rest will be different.

However, the article monevator linked show a real PITA way of having to track CGT.

Questions
How do you decide which shares you are selling vs retaining when realising CGT?

Is there an easy way to manage this? I'm using x-o.co.uk but have no loyalty to platform for this account.

Should I make plans now to realise a proportion of CGT annually or at a certain level? I won't be bed and initially ISA'ing as the ISA accounts will be the first investment vehicle annually.

Cheers

Radiantsoul

Not sure I fully understand the question, but if you sell an amount equal to the CGT tax allowance every year you ought to be fine unless the purchase price was zero.

Radiantsoul

I think if you are looking to minimise the tax rather than just save the admin it is more complex. If you have loss making assets you can offset them against your assets with gains to reduce the tax paid.

You can also transfer assets to a spouse at no gain/no loss. They will then have be able to use their CGT allowance(so you kind of double your allowance).

There is a tax forum on here too.