CGT sale which do I sell

flopsy1973

HI

Just started transfer request from HL to Charles Stanley of my GIA account and regret not taking advantage of the the past bigger CGT allowance. Aim is to shelter all this eventually into the ISA. Confused about which I should sell first to tidy things up was thinking about the deutche Telekom holding and the Troy fund as the Telekom holding had always been at loss so no gain. Or should I sell some the Barclays as that has increased more? Welcome any thoughts

Screenshot_20260225-144508_Chrome.jpg

eskbanker

It'll generally be best to decide which holdings are most (and, conversely, least) compatible with your strategy, objectives and allocation, rather than being unduly influenced by past performance.

In other words, if you were starting from a clean sheet of paper, which would you buy now, and why?

DRS1

First question is do Charles Stanley accept an in specie transfer of all or any of these holdings? If they don't accept some of them then you are going to be selling them (or leaving them behind in HL)

Selling things at a loss is only worthwhile if you have a gain to set the loss against. You could always carry the loss forward but then you have to remember you did that.

You could always just sell enough of the Barclays holding to net a £k gain to use up this years CGT allowance (assuming no other disposals) Or if you want to rid yourself of the losers sell them and enough Barclays to cover the losses realised plus the £3k.

EthicsGradient

(Caveat: since "LF Equity Income"="LF Woodford Equity Income Fund", there is presumably potential litigation and compensation involved, which explains the huge loss on that. I have no idea if selling now affects your possible entitlement to compensation; I will proceed as if it does not)

If you expect future gains on each investment to be the same, then the principle is to Bed and ISA the investments with the lowest current gains first.

For example, consider what a sale now could avoid in gains in the future. Say a 20% increase on the current value on all of them:

Barclays £50,121 - you could sell this tax year £3000 / (271.55 / (100 + 271.55) = £4105. That avoids CGT on another £821 increase

All the rest - this year, you can sell it all - (£5354 + £72 + £906)=£6333, for a gain of (£1970 - £572 - £271)=£1127. So you could also sell (3000-1127) / (71.55 / (100 + 271.55) = £2562 of Barclays. That avoids CGT on another 20% of (6333+2562) = £1779 increase (and the total you're selling, nominally to reinvest in the ISA, is still well under the £20k contribution limit).

In practice, this is also a good time to consider what you really want inside the ISA - apart from dealing costs, there isn't really an advantage in doing a true "Bed and ISA" to keep the same investments, and choosing something else to buy inside it would be a good idea (basically, your current investment is Barclays, plus some noise).

flopsy1973

I requested a in specie transfer but not sure if they will accept the LF equity fund. Would any compensation that would be forthcoming be lost if I transferred this across? Maybe I could keep that at HL ?

Barclays £50,121 - you could sell this tax year £3000 / (271.55 / (100 + 271.55) = £4105. That avoids CGT on another £821 increase

Sorry what is the 271.55 on the above calculations?

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/81899735#Comment_81899735

"271.55" is the percentage gain on your Barclays shares given in your screenshot. So the proportion of any sale of Barclays that is capital gain is 271.55 / (100 + 271.55) - about 73%. If you divide the CGT allowance, £3000, by that, you get the amount you can sell to end up with £3000 gain.

I have no idea at all what might happen about any LF compensation if there were a transfer or sale (I see there's an exclamation mark by that fund in your screenshot - it's worth checking what that means/links to, if you don't already know).

poseidon1

Out of curiosity, and given its disproportionate size relative to your other investments, were or are you a Barclays employee and did any of your shares derive from an employee share investment plan?

flopsy1973

The exclamation mark is unable to deal as the fund is being wound up so trying to find out if I can keep that with HL. Makes sense to get rid of the D.telekom shares and the troy fund and enough barclays up to my CGT limit. Pondering if I should bed and isa the barclays shares? Can I do that partially?

Regarding the other question not employee bought them in the financial crash of 2008

DRS1

Yes you can bed and ISA some of the Barclays shares. I assume by partially you mean not sell all of the Barclays shares? Or do you mean not sell £20k's worth and put all of that in the ISA? If so then yes you can sell as little as you like - eg just enough to keep your gain under the CGT allowance.

It is easier to bed and ISA if your GIA and ISA are in the same place. Are you transferring your ISA at the same time as the GIA? Or is it already with Charles Stanley?

flopsy1973

My ISA still with HL so need to do the bed and ISA now before the GIA transfers over I am hoping the cost figures for HL are accurate. If I sell the other holdings and allow for my losses I can sell about 40 shares of barc for £1856 which would be under the CGT limit?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81900872#Comment_81900872

Have you already initiated the transfer? If so I would call HL to make sure you can do this now.

With the LF Equity holding can you actually sell it? If not ignore that loss - it only counts if you can realise it by selling.

Finally the Barclays share price has moved since your screenshot (gone up a bit to 472.35 sell price) but I think if you sell 40 shares to get £1856 you may be selling too few by a factor of 10. The price of 472.35 is actually £4.72 and a bit.