How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15754
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

There. I will be selling some stock before the end of the

Customer Question

Hi there. I will be selling some stock before the end of the tax year that will likely make a gain of say £16K. I understand the allowance is for £11.1K I also have around £5K unused space in my ISA this year before I reach the £15.24K threshold. If I sell the shares and then immediately allocate the £5K of the proceeds to my ISA, does that mean I will not be elligable for CGT? Many thanks !
Submitted: 10 months ago.
Category: Tax
Expert:  TonyTax replied 10 months ago.
Hi. I'm afraid that it doesn't. Your CGT position and your ISA are completely separate. The gains in excess of the annual CGT exemption will be taxable. I hope this clarifies your situation but let me know if you have any further questions.
Customer: replied 10 months ago.
Thanks. The Sunday Times this last weekend talked about 'bed and ISA'. The paragraph says: "If you have made gains on shares held outside an ISA but have yet to utilise your full ISA alloceance, you could use the CGT allowance to sell the shares tax-free, and then immediately repurchase them for an ISA making all future gains tax free. This process is known as 'Bed and Isa'. The tax man does not allow you to transfer shares to an isa directly". So assume this does nt mean I can use the unused ISA as a second shelter against the capital gain?
Expert:  TonyTax replied 10 months ago.
Let me take a look at that and I'll get back to you.
Expert:  TonyTax replied 10 months ago.
Normally, if you sell shares in a company and buy those shares back within 30 days, the two transactions are matched for CGT purposes which may mess with your tax planning and annual exemption utilisation. However, if you sell shares in a company and then buy them back within 30 days in an ISA, the two transactions are not matched for CGT purposes. You may still have a taxable gain on the initial disposal. See 6 here.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15754
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 10 months ago.
I have a related tax question on how I track the capital gain on my shares. I am buying stock through a fund regularly. Each month the price of the purchase into the fund is different. When I sell part of them, clearly that part of the fund I am selling all has the same sales price. However there is no easy way to know what the original buying price was as they have (other than to be the average of the buying price for the total fund at that point in time. So how do I calculate the gain for CGT? Thanks!
Expert:  TonyTax replied 10 months ago.
You can find the share identification rules here.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions