CGT faux pas 6 March at 8:29PM edited 7 March at 4:33PM in Savings & investments 5 replies 437 views

TBC15

Due to having a senior moment on the calculation front I’ve exceeded my £12300 CGT allowance on selling some Smithson units.

Could I rebuy sufficient units within 30 days  to get back under the CGT limit?

I understand the cost price going forward for these units would be the same as the original 104 price.

Edit: The units sold were Fundsmith not Smithson.

ColdIron

Yes (with wrinkles as above), however do you have anything that has made a loss that you could (temporarily?) sell to offset the excess gain?

If you have a choice a fund could be better that an IT (like SSON) as it would avoid stamp duty and maybe sale and repurchase costs

TBC15

JamesRobinson48 said:

Yes although, as you appreciate, also a chargeable gain or loss would arise on the repurchased units based on the difference between the sales proceeds and the repurchase cost of the units that you bought back. Probably that would be a small amount but should not be overlooked.

Thanks for that.

My situation is that I’ve oversold 47 units. So if I rebuy those 47 units and the price has gone up since I disposed of them, no problem. If the price has gone down time to get the calculator out again?

TBC15

ColdIron said:

Yes (with wrinkles as above), however do you have anything that has made a loss that you could (temporarily?) sell to offset the excess gain?

If you have a choice a fund could be better that an IT (like SSON) as it would avoid stamp duty and maybe sale and repurchase costs

Unfortunately/fortunately I don’t have anything in negative territory in my trading account.

frugalmacdugal

Hi,

how much do you reckon it'll cost in tax v cost to buy back?

TBC15

frugalmacdugal said:

Hi,

how much do you reckon it'll cost in tax v cost to buy back?

Tax about £10 buy back £0 if I wait a couple of days.

It’s more about the principal and staying off radar.