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wanted high risk short term investment...
Comments
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How about investing in gold miners in Kazakhstan?Free the dunston one next time too.0
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[FONT=Verdana, sans-serif]I can't see why hoping you make a loss to save CGT would ever be a good idea unless you already have a loss elsewhere you can crystallise.[/FONT]
[FONT=Verdana, sans-serif]How much of a loss will you need to make to save your £3,600?, probably at least £20,000. [/FONT]0 -
Another one of Mr Woodford's chosen investments
His fandom of Capita and Provident Financial isn't doing many favours just at the moment either.
http://m.citywire.co.uk/money/capita-and-provident-falls-hit-woodford-and-barnett/a1083906
As for the thread subject, I don't know much about capital gains and tax, but I thought that for investments there isn't rollover relief, such as there might be for business assets, so I'm not sure the OP's motive to reinvest would work.
There won't be much sense in aiming for a loss, as the tax is a small proportion and the investor still has 90% or 80% of the gain
But don't take this reply as definitive. Does anyone see anything to correct in what I'm saying?0 -
I don't think that the idea is to make a loss, but to make a high risk investment as the risk is shared with the taxman so any losses (if taken this tax year) are shared with the taxman and any profits can be taken tax free using next year's CGT allowance (if sold in the next tax year, although the OP says he will take the profits in this tax year, but why?).[FONT=Verdana, sans-serif]I can't see why hoping you make a loss to save CGT would ever be a good idea unless you already have a loss elsewhere you can crystallise.[/FONT]
[FONT=Verdana, sans-serif]How much of a loss will you need to make to save your £3,600?, probably at least £20,000. [/FONT]This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Dignity plc (DTY.L FTSE 250) are down nearly 50% today.
Either shoot back up or continue down?
Funeral Services.
The business model is generally sound and their dominance in the market place is such that I wouldn't expect prices to continue to fall significantly. Rather it is likely that over the medium term there will be strong growth.0 -
Malthusian wrote: »Assuming a basic rate non-residential-property liability, a bill of £3,600 implies a gain over the allowance of £36,000.
If you invest £36,000 and lose the lot, you've thrown away £32,400 over a bill of £3,600. Classic case of the tax tail wagging the investment dog.
Although the downside is limited by the potential to offset losses, so is the upside because you're planning to cash it in on 4 April, so we know you'll be paying CGT on any gain, possibly at a higher rate.
It never ceases to amaze me the number of people who seek to avoid paying tax at (literally) any cost.0 -
as Filo says, my first thought was Cryptocurrency..
but HH is on the right track..HappyHarry wrote: »Have you looked at EIS investments which could allow you to defer your CGT until such a time where you may not have any CGT liability?0 -
I don't think that the idea is to make a loss, but to make a high risk investment as the risk is shared with the taxman so any losses (if taken this tax year) are shared with the taxman and any profits can be taken tax free using next year's CGT allowance (if sold in the next tax year, although the OP says he will take the profits in this tax year, but why?).
Making a loss of £20k but sharing it with the taxman who will return £3.6k is still a actual loss of £16.4k, where on earth is the sence in that? If the tax rate was 90% or even 50% there might be some logic in doing it.0
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