Clarify 30 day rule on stocks and shares

Stroppypineapple98

Hi there

I sold some S&S - a Vanguard ETF - from within a T212 GIA (gain not subject to CGT as well under the £3k), in order to rebuy within my ISA. Am I correct that I cannot buy the same ETF in the GIA again for 30 days without this having a CGT implication later on? So if I want to buy in my GIA either wait until the 30 days is up, or buy a different ETF sooner? I’ve never had any S&S outside an ISA before this year so am checking I’m doing it correctly.

eskbanker

You're right - if you repurchase the same ETF (outside an ISA) within 30 days of the sale, those two transactions will be matched and so the acquisition cost for the new units would effectively be set to that of the original purchase, which is unlikely to be ideal for CGT.

aroominyork

So the CGT implication is only if the gain - when you eventually sell (for the second time) - is over £3k when based on the original purchase price.

DRS1

Well and the fact that you have not used up the amount of this years £3k allowance that you expected to use. Which either gives you scope for another disposal or means you have wasted it.

Stroppypineapple98

Thanks everyone, that confirms what I thought. Trying to keep it simple and shelter as much in the ISA as possible before investing outside the ISA wrapper.

https://forums.moneysavingexpert.com/discussion/comment/81965763#Comment_81965763

yes makes sense - I may do another disposal later in the year