Latest date to sell shares for this years CGT allowance?

furpho

Hi, I'm considering selling £70K in my GIA and rebuying different shares in 24/25 tax year.  I have around £6k since investing in Jan.  (I'll be bed and isa'ing in future but my 24/25 ISA is already accounted for).  

Depending on what the market does and how long it takes to sell and rebuy I'm not sure it's the most effective way to maximise profit but while I consider that I need to know the latest date I can instruct my platform to sell for it to be classed as a 23/24 sale.

Also any idea how long it takes for sale and rebuy?

ColdIron

As I understand it, it's the trade date (rather than the settlement date) that counts so for shares 05/06/2024 05/04/2024 (a Friday) should be fine. I'd be less certain of OEICs, they could trade the next day

eskbanker

ColdIron said:

As I understand it, it's the trade date (rather than the settlement date) that counts so for shares 05/06/2024 (a Friday) should be fine.

Better to sell by 5 April rather than waiting until June!

wmb194

furpho said:

Hi, I'm considering selling £70K in my GIA and rebuying different shares in 24/25 tax year.  I have around £6k since investing in Jan.  (I'll be bed and isa'ing in future but my 24/25 ISA is already accounted for).  

Depending on what the market does and how long it takes to sell and rebuy I'm not sure it's the most effective way to maximise profit but while I consider that I need to know the latest date I can instruct my platform to sell for it to be classed as a 23/24 sale.

Also any idea how long it takes for sale and rebuy?

Friday 05/04. It's the trade date that counts, not the settlement date. Are you selling shares and ETFs or OEICs? Usually most brokers will allow you to reinvest immediately with shares and ETFs but you'll need to wait with OEICs.

EthicsGradient

If it's an OEIC, to be absolutely certain, you should give a platform an instruction to sell before the valuation point on Thursday 4th April.

When, a couple of months ago, I gave an instruction to sell on a Friday (well before the one hour before the valuation point (noon) that they say is needed), ii counted it as a sale on the Monday (and my free trade credit ran out on the Saturday, so they charged me). That was in an ISA, but I presume they'd say the same for a trading account. They claim that it's not the date they write on the contract note that counts (which was the Friday), but when they issue it - which was the Monday morning. 

So, with ii (and maybe others), sell early on Thursday - or earlier still, of course.

furpho

Thanks everyone.  It's an OEIC so if I do go down this path I think I'll do it on Weds 3rd for peace of mind.  My plan was to buy another OEIC so I'm estimating this is 10 days out of the market.

furpho

Actually while I'm here.  My plan is to sell my HSBC FTSE All World Acc and buy Fidelity World Index P.  I'm assuming this change is sufficient to be classed as a completely different investment so avoiding having to do the 30 day rule?   Also I'd prefer to buy the Acc version of Fidelity rather than the Inc but I'm aware that tax calculations may be more difficult to work out with the Acc version.  Thoughts? 

As you've probably worked out I'm new to all this (inheritance).

dunstonh

Thanks everyone.  It's an OEIC so if I do go down this path I think I'll do it on Weds 3rd for peace of mind.  My plan was to buy another OEIC so I'm estimating this is 10 days out of the market.

That is a vital bit of information as you said shares in the first post.    Shares are traded in real time but OEICs have a single daily dealing point.

If you key it on the 3rd, it will be traded on the 4th and the contract note will show the 4th as the sale date.  Settlement is irrelevent.

Actually while I'm here.  My plan is to sell my HSBC FTSE All World Acc and buy Fidelity World Index P.  I'm assuming this change is sufficient to be classed as a completely different investment so avoiding having to do the 30 day rule?

Its a different investment.   

 Also I'd prefer to buy the Acc version of Fidelity rather than the Inc but I'm aware that tax calculations may be more difficult to work out with the Acc version.  Thoughts? 

I always buy INC on a GIA as it makes tax much easier.

ColdIron

furpho said:

Actually while I'm here.  My plan is to sell my HSBC FTSE All World Acc and buy Fidelity World Index P.  I'm assuming this change is sufficient to be classed as a completely different investment so avoiding having to do the 30 day rule?  

Yes, definitely a different security

Also I'd prefer to buy the Acc version of Fidelity rather than the Inc but I'm aware that tax calculations may be more difficult to work out with the Acc version.  Thoughts?

Both require some consideration. With Acc funds you need to deduct retained dividends when calculating CGT but you can ignore equalisation. With Inc funds you can ignore dividends for CGT but have to consider equalisation payments as they can increase your capital gain although with a low dividend (hence low equalisation) fund like Fidelity World Index and infrequent trading it should be minimal

Your annual Consolidated Tax Certificate will detail both and you obviously can't ignore dividends themselves and their tax for either

Inc funds can be marginally easier (and handy for paying fees) but with an Acc fund as long as you keep your simple gain (sell minus buy) within the annual exempt amount before considering dividend deduction you should be fine as all they will do is reduce the actual gain

Opinions vary

masonic

furpho said:

Actually while I'm here.  My plan is to sell my HSBC FTSE All World Acc and buy Fidelity World Index P.  I'm assuming this change is sufficient to be classed as a completely different investment so avoiding having to do the 30 day rule?   Also I'd prefer to buy the Acc version of Fidelity rather than the Inc but I'm aware that tax calculations may be more difficult to work out with the Acc version.  Thoughts? 

As you've probably worked out I'm new to all this (inheritance).

You are aware that the latter is developed world only, yes?

furpho

masonic said:

furpho said:

Actually while I'm here.  My plan is to sell my HSBC FTSE All World Acc and buy Fidelity World Index P.  I'm assuming this change is sufficient to be classed as a completely different investment so avoiding having to do the 30 day rule?   Also I'd prefer to buy the Acc version of Fidelity rather than the Inc but I'm aware that tax calculations may be more difficult to work out with the Acc version.  Thoughts? 

As you've probably worked out I'm new to all this (inheritance).

You are aware that the latter is developed world only, yes?

Yes, thank you.  Fidelity seems to have faired a little better over the last few years and is slightly lower cost.  Not saying this will last but as long as my investments are 'world' I'm happy.  I'm in it for the long term.