Averaging up to decrease CGT liability?

scoobyjones1

Newbie question, any advice or experiences welcome.
Let's say I bought some US shares, in a trading account 5-6 years ago, adding a few more here and there over the years. If one tech company has done really well in this time that would mean a large profit on paper, liable for CGT. If I wanted to empty out this trading account (it's not tax efficient) and move the funds into an ISA over the next few years would it be advantageous to buy more of these shares at today's prices, thereby increasing the average price per share (averaging up)? The idea being that when I sell some of these shares, the profit per share would then be lower so I could sell more shares using my CGT allowance (and my spouses). I understand there are rules whereby you have to wait 30 days before you can buy and sell the same company, so there is a risk that the share price could plummet.
Thanks in advance.

DRS1

I don't think you need to worry about the 30 day rule if you buy first and sell second It catches you where you sell first and buy second (within 30 days of the sale).

masonic

Diluting your capital gain per share (ignoring share price movements after buying) will not change the overall capital gain resulting from selling your shareholding, or even selling a fixed percentage of your holding, so I am not following your idea to buy more in order to reduce your holding within the CGT limit more quickly. Sure you will be able to sell a greater number of shares each time, but you will also be left with a greater number of remaining shares after the sale.

ColdIron

No. Your gain per share reduces but you would need to sell more shares (the ones you bought) and achieve same overall gain. You could sell fewer shares but then you could do that now