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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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There. I will be selling some stock before the end of the

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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 !
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 2 years 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?
Let me take a look at that and I'll get back to you.
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.
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Customer: replied 2 years 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!
You can find the share identification rules here.