Bed & ISA

drfclee

I’ve got shares in 3x companies, two running at a loss and 1 doing well. Over all I’ve got approx £7500 in value which I’m only a few hundred quid in profit.

The shares are at a loss are £4200 and 500, the gain is £5000. The question I have is do the losses negate any possible CGT on the gain?

when moving shares of this value to a B&I, is CGT even applicable. 

Had shares for a few years now but didn’t even know about B&I.

Hoenir

drfclee said:

The shares are at a loss are £4200 and 500, the gain is £5000. The question I have is do the losses negate any possible CGT on the gain?

when moving shares of this value to a B&I, is CGT even applicable. 

Capital losses can be offset against caital gains. 

CGT is payable on gains crystallised on investments held within a GIA.  The transfer of the investments to the ISA is irrelevant. In effect it's two seperate transactions considering of a sale and purchase. 

ColdIron

You have a £3,000 'allowance' each financial year, the Annual Exempt amount, that you can use on your gains. Losses can be offset against gains so the net gain could be within the AEA. However any single gain in excess of the AEA may still be reportable even if the net figure is not. You may want to split that across more than one financial year

Beddie

"The question I have is do the losses negate any possible CGT on the gain?" Yes. You look at the net gain if you sell them all.

You cannot "move shares of this value to a B&I" - the process is Sell the shares and then Buy back in an ISA. Of course you don't have to buy those same shares unless you want to, you can buy anything.

In your case, if you sold them all there would be no CGT to pay on the small gain, assuming you don't make any gains elsewhere. Therefore it's a good time to sell and buy back in a S&S ISA. Then you will never have to think about CGT again for these shares.