Should I sell shares to set losses against realised gains?

Hi all,

MARS which are a private company are taking KELLANOVA private and which will result in a potential 9k CGT.

I have other share holdings (4) that I planned to hold long term (>10 years) which are currently not performing very well…down 50%.

Should I sell some of these stocks to offset against the Kellanova gain or just pay the CGT and wait for the other stocks to potentially recover?

Don’t need the cash…just trying to work out the best possible approach.

Any advice greatly appreciated.

With only 4 shares in your portfolio, they might all stay down.

So, I think I would realise a capital loss of €30k to set against the gain.

As it is not expected to close until 2025, then you have until the end of 2025 to make the decision.

If, at that stage, your 4 shares are in the positive territory, cumulatively, you might as well just take the CGT hit.

Brendan

Can’t you just sell the loss making stocks and immediately rebuy them?
It’s the best of both worlds in this situation. Defer short term CGT payment and continue to hold the stocks (which I’m assuming you want to?)

Shares sold and rebought within four weeks can't be offset against other gains.

Shares sold within four weeks of acquisition​

Shares bought and sold within a four-week period cannot be offset against other gains.

You can only deduct the loss from a gain made on a subsequent disposal of same-class shares acquired within the four weeks.

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I’d sell them and, worst case, wait the four weeks. 50% does seem a lot, just be careful that what you think is the bottom isn’t just the bottom of the page. Also, it’s not just waiting for what you’re in to recover, it’s the opportunity cost of not being in better quality ‘things’.

Just wanted peoples opinions on best approach to take…
Had purchased Kelloggs for the long term..hoping for growth of 4/5 % per year and had no intention of selling but with MARs buying them, I’ll be forced to realise the gain in the middle of 2025…

I have a basket of shares…36 different holdings in US, UK & EU…

Gordon I’ve 4 holding sitting on loses of approximately 50% each and have 4 outstanding holding on 200% plus each…rest in double digits.

I was planning on holding onto the 4 poor performers to see if they would recover somewhat in the medium term but with this CGT payable end of next year, I was wondering if I should sell some of these…

I can wait and see until mid 2025 to see what to do as Brendan suggested.

Other caveat is there’s talk of another of these companies been taken private as they are ripe for a takeover due to their high debt levels and are a leading supplier of plasma products in Europe.

I was trying not to panic and sell shares when they are falling and likewise when they are performing really well…too stay in the market for the very long term…20+ years if that makes sense.

I probably would have sold the leading positions if CGT was slightly lower and reinvested..