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Inherted funds with a loss
srcandas
Posts: 1,241 Forumite
In February my mother left me about £38000 in funds: Fidelity European and European Opportunities. As I understand it their value is based on the 'date of death'. Sadly I did not have control of the funds until September and by then they had gone down.
I have now sold them taking 50% cash and with 50% buying a range of other funds through the Fidelity supermarket. The new funds are not held in an ISA.
Question: I am sitting on a loss of several thousand £s. I do not have profits to take certainly this tax year. Is there anything I can do to use the loss?
Logic tells me not but I'd hate to find out in the future that I had missed a trick.
Much appreciate any thoughts :beer:
I have now sold them taking 50% cash and with 50% buying a range of other funds through the Fidelity supermarket. The new funds are not held in an ISA.
Question: I am sitting on a loss of several thousand £s. I do not have profits to take certainly this tax year. Is there anything I can do to use the loss?
Logic tells me not but I'd hate to find out in the future that I had missed a trick.
Much appreciate any thoughts :beer:
I believe past performance is a good guide to future performance :beer:
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Comments
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Your question might receive better attention on the Cutting Tax forum. My thought is that if your mother's estate attracted IHT, her executor may have 'missed a trick', as you put it, by not reducing that IHT liability by selling the holdings before her estate was wound up.In February my mother left me about £38000 in funds: Fidelity European and European Opportunities. As I understand it their value is based on the 'date of death'. Sadly I did not have control of the funds until September and by then they had gone down.
I have now sold them taking 50% cash and with 50% buying a range of other funds through the Fidelity supermarket. The new funds are not held in an ISA.
Question: I am sitting on a loss of several thousand £s. I do not have profits to take certainly this tax year. Is there anything I can do to use the loss?
Logic tells me not but I'd hate to find out in the future that I had missed a trick.
Much appreciate any thoughts :beer:
No doubt others will comment.".....where it is corrupt, purge it....."0 -
Tx Barak but sadly no IHT :beer:I believe past performance is a good guide to future performance :beer:0
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Question: I am sitting on a loss of several thousand £s. I do not have profits to take certainly this tax year. Is there anything I can do to use the loss?
Report the loss to HMRC: note that gains from any sales during the same tax year will have the effect of reducing the size of the loss that can be reported. The loss can then be carried forward to future tax years to offset against any gains that exceed the limit in force at that time, reducing (or eliminating) the amount of CGT that will be paid.
http://www.hmrc.gov.uk/cgt/intro/working-basics.htmLiving for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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Muchas gracias Ark. It I shall do :beer:I believe past performance is a good guide to future performance :beer:0
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it was never your money so how are you ever going to make a loss?:think:0
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I think the loss will be between data of death and date of disposal. And gain/loss by the original holder is wiped out on death.
This is why that if one spouse is clearly on their last legs, all assets with gains are best moved into their name.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
If you don't normally file an SA Return - there is no need to record the loss with HMRC. It's unnecessary until / if you wish to utilise it. But there are timeframes for using the loss - via the link already provided.If you want to test the depth of the water .........don't use both feet !0
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There are time limits to reporting a loss rather than utilising: http://www.hmrc.gov.uk/cgt/intro/losses.htm#3
The link does say that youy do not need to report it via a tax return if you do not normally fill one in - you can write to them to give them the calculations and details.
I'm a believer in reporting things at the first opportunity - if it's to my benefit
- so that: a) it isn't forgotten; b) rules don't change to my detriment, e.g. reporting timescales could be reduced. Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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Your question might receive better attention on the Cutting Tax forum. My thought is that if your mother's estate attracted IHT, her executor may have 'missed a trick', as you put it, by not reducing that IHT liability by selling the holdings before her estate was wound up.
No doubt others will comment.
Yes -if assets are sold within a certain period after death, (2yrs??) then the executors can effectively replace the value at death with the value at sale, for the purposes of IHT.
If the assets were transferred to the beneficiaries, however, it can't be done.
If there is no IHT issue then this is irrelevant.
So the best you can hope for is a reduction in the IHT bill - you'll still have to stand the loss in value that was due to market conditions.We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0
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