CGT liability on Shares sold What is the best approach to offset tax due

B

Bluefin

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Hi All,

I made a substantial gain by disposing of shares of a number of companies that I hold in my share portfolio.

I have other companies that have made small losses (4k approx).

The companies in question where bought for the long term (5yrs +) and dividend returns.

Should I now sell the loss making shares to offset against CGT due or just continue to hold these shares and just pay the tax due?

I have other shares that I could offset this loss against next year.
 
It’s a bit late now but you should have sold the losers first.

You can carry losses forward but not backwards.
 
Sarenco said:
It’s a bit late now but you should have sold the losers first.

You can carry losses forward but not backwards.
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But presumably he can still sell the shares that are in loss now to offset the gain because the capital gains were crystallized this year, its ok if it all happens in the same year.
I think what you are saying is you cannot carry losses back to previous years but it is perfectly ok to offset within the current year ?
Oh sorry I reread the post and he wants to offset losses from next year which he can't do
 
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It's not so much off setting losses this year or next year.. It's more about holding shares for the long term, realising gains after achieving really good returns and not really worrying about current losses.. I'd be hoping these will deliver a positive return eventually
 
Minimize your tax now. That's a guaranteed return.
You can always buy back the shares your sold later (after 1 month to avoid tax issues).
 
AJAM said:
Minimize your tax now. That's a guaranteed return.
You can always buy back the shares your sold later (after 1 month to avoid tax issues).
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That's been my strategy although lots of other people could be doing the same thing driving the share down further coming towards Christmas and then the price jumps back up in January as people buy back in, Its obviously easier to do this when you have a large portfolio as there will always be something showing negative . Also there are lots of share buyouts happening now especially in UK so you will have crystallized gains whether you intended to or not from these.
I think tax loss harvesting is a great strategy in the current high tax investment environment
 
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