The 30 day rule,share trading

C_Mababejive

Example,,

I hold 1000 shares of a company outside of an ISA.

I then decide to buy 1000 shares of the same company inside an ISA.

The share price is rising nicely.

I plan to sell some/most of the shares held outside of the ISA to fund the purchase of the shares i bought inside the ISA.

Are there any issues here with regard to the 30 day rule or is it just a CGT calc in respect of the sale outside the ISA?

tnx

bowlhead99

So, when you sell the existing 1000 shares outside the ISA you get an amount of proceeds which you compare to the cost of the 1000 shares and might have CGT - the CGT calc as you mention.

The basis for the cost of the shares uses all the usual rules: purchases on day of sale, purchases from 30 days after sale, then the previously held pool of shares. If you're going to do your all of your re-buy inside an ISA, there won't be any purchases on the day of sale or within 30 days of sale which ever need to be shown to the taxman because he doesn't know or care what you're buying inside the tax wrapper of an ISA (as long as the ISA isn't buying any non-allowed assets).

Essentially anything that happens inside an ISA is invisible to the taxman. It would be the same if doing the buyback within a SIPP too. The tax 'wrapper' sits around all your activities and there will never be any tax on dividends, interest or gains inside it - as such there is no need to keep records of what you paid for things, how much income was received or any of that stuff.