Capital gains tax with sale and reinvestment.

Ralkbirdy

I have made about £10,000 increase in the value of an income unit trust x, if I now sell this particular trust and reinvest it into a different product z, with the same provider, does this mean a capital gain of £10,000 which is within the years allowance?

If I want to buy the original unit trust x again, do I need to wait a specific time?
If every year I should aim to sell up to the tax limit £11,100, and reinvest in a similar product then I should minimise the capital gains tax against never sellng?

Thanks

bigadaj

Yes, it's a use it or lose it annual allowance so a god idea to use very year if you can.

You normally have to wait 30 days before buying soemthing back to escape capital gains tax as a disposal, but you can sell one fund or trust and immediately buy a similar one, that would be affected so long as it's not exactly the same one.