Should I crystallise shares loss?

I bought bank shares in September! The investment is down about 60% or €7,000. I believe the shares will recover in due course over a number of years - well, I have to don't I?

My question is: Is there any point in crystallising the loss now or before year end? These are the only shares I have. I may have a capital gain from the sale of a house in a couple of years time. Could the shares loss be offset against the profit from the house?

Thanks for any advice.

Slim

the loss could be offset. However do you intend to simply sell teh shares and take the hit, or do you intend to try to buy back the shares at close to selling price?

There is no advantage in selling the shares now if you think that they are going to increase.

If you were selling the property now and realising a gain, it might be to your advantage in selling shares to realize a loss. But there is no advantage in realizing a loss if you don't have a gain available now against which to set it off.

Brendan

Thanks guys. My thought was to crystallise the loss now and carry it forward to set any future profits from the house or the shares I buy back against the loss. Yes, I was thinking of buying them back, like a B&B arrangement.

Slim

Slim said:

Yes, I was thinking of buying them back, like a B&B arrangement.

Slim

Click to expand...

the loss won't be allowed if you purchase shares of the same class in the same company within 4 weeks of the disposal.

You would also be incurring needless transaction costs, and in the event of the shares rising from the lower price you will have a bigger gain liable to CGT in future.

Thanks everyone. I will hold out. Slim