SVS Securities - shut down?

juliamarsh

Economic wrote: »

Not if you reinvest in Scottish Mortgage shares within 30 days of the sale.

Please can you clarify this? Are you saying that if one sells shares in a company and then reinvests in the same company within 30 days there are no capital gains generated? Does it have to be exactly the same number of shares that were originally sold, or the same amount of money that was raised by the sale?

System

juliamarsh wrote: »

Please can you clarify this? Are you saying that if one sells shares in a company and then reinvests in the same company within 30 days there are no capital gains generated? Does it have to be exactly the same number of shares that were originally sold, or the same amount of money that was raised by the sale?

Yes, it follows from the CGT rules to stop 'bed and breakfasting'. If the same number of shares were bought as sold then it is as if the transactions never happened.

juliamarsh

Economic wrote: »

Yes, it follows from the CGT rules to stop 'bed and breakfasting'. If the same number of shares were bought as sold then it is as if the transactions never happened.

Are you permitted to repurchase them in a different account from the one you sold them from? Am I right in thinking if you sell them from a trading account and repurchase them within an ISA that would generate a gain?

LEAR1

juliamarsh wrote: »

Take my word for it, SVS were far from respectable and it is extremely fortunate that you didn't fall for their sales patter. I fielded them off for years ...

Thanks for sharing your experience Juilamarsh - provides some insight as to what might have happened. And, by implication, could imply that it is not a mismanagement / poor reconciliation / ring-fencing clients' assets that was the issue concerning the FCA, but the advice they were giving clients like you.

While I feel for your experience and the battle you had to get your money back, I'm very pleased to hear that it was at least finally resolved - even if you're not quite in the same place as you might have been holding your original stocks.

ColdIron

juliamarsh wrote: »

Please can you clarify this? Are you saying that if one sells shares in a company and then reinvests in the same company within 30 days there are no capital gains generated?

Yes. If you want something to Google try Section 104 holdings or for a longer read ...

https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet

Does it have to be exactly the same number of shares that were originally sold, or the same amount of money that was raised by the sale?

Value but it doesn't have to be exactly the same

System

juliamarsh wrote: »

Are you permitted to repurchase them in a different account from the one you sold them from? Am I right in thinking if you sell them from a trading account and repurchase them within an ISA that would generate a gain?

If by different accounts you mean trading accounts with different brokers then yes. You are right that Bed and ISA transactions generate a gain as the taxman only sees the sale for CGT purposes.

ColdIron

juliamarsh wrote: »

Are you permitted to repurchase them in a different account from the one you sold them from?

Yes

Am I right in thinking if you sell them from a trading account and repurchase them within an ISA that would generate a gain?

Yes. It is only the disposal that counts in this case

System

ColdIron wrote: »

Value but it doesn't have to be exactly the same

For there to be no gain it would have to be the same number of shares. If the number of shares sold is 1,500 and the number of shares repurchased within 30 days is 1,000 then 500 shares have been sold leading to a possible gain.

juliamarsh

LEAR1 wrote: »

Thanks for sharing your experience Juilamarsh - provides some insight as to what might have happened. And, by implication, could imply that it is not a mismanagement / poor reconciliation / ring-fencing clients' assets that was the issue concerning the FCA, but the advice they were giving clients like you

You may very well be right - I strongly suspect this could be one of the major issues the FCA is concerned about, and rightly so. However they are so appalling that I wouldn't be at all surprised if I heard that there were issues over mismanagement/poor reconciliation/ring fencing as well. I wouldn't put anything past them to be honest! Time will tell. I intended to report them to the FCA at the time, and to the Ombudsman for the 'mistakes' in their compensation calculations and for procrastinating so long over paying up, but I was so exhausted from battling with them for so long that I never got round to it. Really wish I had now!

dales1

There is a capital gain - see the HS284 leaflet or webpage
"How you work out the gain under the ‘bed and breakfasting’ rule If a disposal of shares is identified with shares acquired within the following 30 days, the gain or loss on disposal is the difference between the net disposal proceeds and the acquisition cost."