When will any changes in Capital Gains Tax take effect?

JeffMinter

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

DRS1

TBC15 said:

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

10% or 20% depending on whether you are a basic rate or higher rate tax payer

km1500

you are correct, and can carry forward any previous year's losses as well

DRS1

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

Nova1307

IanManc said:

Nova1307 said:

JamesRobinson48 said:

ColdIron said:

Chancellor Rachel Reeves has announced that CGT will rise from 20% to 24% at the higher tax rate. 

The lower CGT rate will rise from 10% to 18%. 

The new rules will come into effect from 5 April 2025 and are expected to raise £25bn.

I think not: it looks like the new rates come into effect today. From HM Treasury main budget pack, para 2.48:

The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024.

https://assets.publishing.service.gov.uk/media/6722120210b0d582ee8c48c0/Autumn_Budget_2024__print_.pdf

Ouch!

I read that many BTL landlords were selling up in anticipation of tax (presumably CGT) going up in this budget but it looks like residential property is not in the scope of these rises (applies to shares and other such assets). Only stamp duty on second properties has gone up but that will only impact future property transactions.

Residential property gains were already taxed at 18% and 24%. The rates on everything else have been raised to match.

Yes I was aware of that. They could still have been increased further today but obviously were not. 

Nova1307

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

poseidon1

This maybe a good time to take a critical look at one's GIA portfolio and clear out the persistent under performers showing a loss.

Since losses can be carried forward indefinitely, taking the hit now may benefit the portfolio longer term in sheltering some of the future residual portfolio gains.

Alternatively, if one has isa allowances left ( or spouse isa allowance ), then 'isa bed and breakfast ' the loss making share and reacquire in the ISA. Same outcome with regard to the GIA realised allowable loss, but you get to keep the holding ( subject to dealing costs) , if you have faith in its recovery prospects.

Sadly this bed and breakfasting isa technique not available for unit trust funds , just shares and etfs.

masonic

poseidon1 said:

Alternatively, if one has isa allowances left ( or spouse isa allowance ), then 'isa bed and breakfast ' the loss making share and reacquire in the ISA. Same outcome with regard to the GIA realised allowable loss, but you get to keep the holding ( subject to dealing costs) , if you have faith in its recovery prospects.

Sadly this bed and breakfasting isa technique not available for unit trust funds , just shares and etfs.

What makes you think Bed & ISA works differently for unit trusts and shares?

artyboy

dunstonh said:

TBC15 said:

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

Trades made today onwards would be.  Trades made yesterday or earlier would not be.

Well that's just the cherry on the great steaming brown pile of cake that I've been served today... I was thinking about taking the 10% hit on some unwrapped shares, but nope, another door slammed shut.

Let's see if a glass/vat of wine will change my immediate desire to quit this manky little island for good... as if Brexit wasn't reason enough...

DRS1

Nova1307 said:

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

What I had in mind was something like this.  I sell shares before 30 October and make a gain of £10k and a loss of £6K so pre 30 October gain is £4k.  Then I sell more shares after 30 October and make a gain of 10K and no losses so post 30 October gain is £10k  Total gain for the year is £14K  less £3K gives chargeable gain of £11K.  What rate(s) apply to the £11K?  Is it 28% on 10K and 20% on £1k?  Or can I put more of the £3K allowance against the post 30 October gain?  If I apportion it is it time based or gain based eg 10/14 x £3k to set against the 10K gain post 30 October?
These are of course figures I have just made up!