stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 6, 2019 22:42:46 GMT
When do most people do this?
Start of tax year? End of tax year? (In case any other CG needs to be included, like property or something else)
When there are sufficient CG? (Anytime in the year? There has been a recent downturn, markets have bounced back a bit, is now a good time? Or should you wait to see if goes up further?)
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 7, 2019 7:51:18 GMT
stevio Erm.... Surely by its very definition, being concerned about using CGT allowances means you will be taking action at some point towards the end of the tax year ? During the course of the year you could make any number of trades and so how could you possibly predict your CGT position at the end of the year in month one ? You might make large losses (or gains) throughout the year ... who knows ! Bed and breakfast is also by definition done at the end of the year too. Disclaimer: CGT is not necessarily as simple as it seems. Consult a decent accountant if the sums involved are large enough to be genuinely concerned about. Depending on your circumstances, other options to keep your CGT under control may (or may not) exist beyond the ones I have mentioned above, but most of them will require a decent level of disposable wealth to be worthwhile even thinking about. Thanks, I am a buy and hold rather than a trader, with virtually no sales in the year other than to use the CGT allowance. So in that respect I could sell and re buy similar/ISA at any point in the year I was also thinking about the recent dip and bounce back. During the dip it wiped out my gains for the year, but the bounce back has meant gains again. I suppose if it dips again, then I dont have any gains to worry about selling for If it goes up further and it happens to be more than my CGT allowance (unlikely), then I guess I just sell enough for a gain within the allowance. My main issue is probably going to be the opposite and having enough gain to use up my allowance, so waiting till as close to the end of the tax year makes sense
|
|
awk
Posts: 275
Likes: 146
Member is Online
|
Post by awk on Feb 7, 2019 8:08:31 GMT
Trying to be organised for once - a few years ago, knowing that I wouldn’t realise any other CGT liability, I sold just enough shares to realise the full years CGT allowance in the November.
A few days later, there was a takeover bid for another of my share holdings at a big premium which eventually went through in the February, creating a large unplanned CGT liability - wasn’t happy.
So, lesson learnt the hard way - now I only actually sell anything in March
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Feb 7, 2019 9:05:48 GMT
Guess it's an it depends....if you're only doing it to use the allowance then end of the year probably makes the most sense. Was talking to my IFA* earlier this week and mine's already been used up and they've already gone a bit over, but that's partly because they also buy & sell a lot of single stocks for me, so "ideal" timings vary a lot more (and I suspect a lot have been sold through caution this year). Also it's not just about gains - losses can be useful too, annoyingly I used up the last of my rolled-forward ones last year so may have a teensy bit of a CGT bill this year (tho the PM->UKDP transfer should help)..at least the rates are lower. *Long term posters might be interested to know that he's still pretty wary of p2p, and hadn't even heard of COL or LY
|
|
|
Post by Deleted on Feb 7, 2019 9:21:47 GMT
If you are a true "buy and holder" then the recent drop of only 10% cannot have emptied your capital gains opportunities.
What I do with buy and hold is to identify price targets and once an SP goes above this level then I set a drop price to sell at.
When to take advantage of the allowance; monthly you should look forward at the next three months economic directions (reading the Economist weekly should do it) and sell when they turn sour.
|
|
|
Post by Deleted on Feb 8, 2019 8:47:07 GMT
Well, it does depend if you are a buyer and holder (B&H), the mindset is very different from a day trader and critically timing of buys and sells for a B&H are very different. For example, the view of the direction of movement of the FED interest rates is probably the most important element of this type of shareholding. Generally, B&H do very well in the market if, IF, they select the right assets. Some B&H buy regularly and rebalance based on asset types, that can also be a method of generating CG which the Op might like to consider.
FAANGS are generally very volatile assets and I'm not sure a B&H would naturally add those to their holdings, though they might add something like the Fidelity Technology Fund which is aligned with FAANGS for something like 15% of the total assets. Right now the two things that hit FAANGS are the war with China and FED rate. You can get almost perfect correlation by reading www.marketwatch.com news items daily. But that is not a B&H strategy that is a day trader strategy.
Journalists, I have two views on Journalists, if you want to know which assets to sell, read the Daily Mail and sell whatever they recommend as a buy. Then there is the Economist, which offers significant technical advice and information.
I suspect you meant "wary" but "weary" might also be the case. :-)
My own position on equity has changed during 2018 and I have moved from a very successful weekly trader position to a B&H position in some very specific markets. This seems to have kept me safe from Octobers 15% fall and most of my tradable assets are up about 10% from the summer. I'd like to claim some highly skilled reasoning for this action, but it was just a feeling (as they say the hardest part of investing is keeping control of the monkey in front of the screen)
|
|
Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
|
Post by Godanubis on Feb 8, 2019 12:04:33 GMT
Well, it does depend if you are a buyer and holder (B&H), the mindset is very different from a day trader and critically timing of buys and sells for a B&H are very different. For example, the view of the direction of movement of the FED interest rates is probably the most important element of this type of shareholding. Generally, B&H do very well in the market if, IF, they select the right assets. Some B&H buy regularly and rebalance based on asset types, that can also be a method of generating CG which the Op might like to consider.
FAANGS are generally very volatile assets and I'm not sure a B&H would naturally add those to their holdings, though they might add something like the Fidelity Technology Fund which is aligned with FAANGS for something like 15% of the total assets. Right now the two things that hit FAANGS are the war with China and FED rate. You can get almost perfect correlation by reading www.marketwatch.com news items daily. But that is not a B&H strategy that is a day trader strategy.
Journalists, I have two views on Journalists, if you want to know which assets to sell, read the Daily Mail and sell whatever they recommend as a buy. Then there is the Economist, which offers significant technical advice and information.
I suspect you meant "wary" but "weary" might also be the case. :-)
My own position on equity has changed during 2018 and I have moved from a very successful weekly trader position to a B&H position in some very specific markets. This seems to have kept me safe from Octobers 15% fall and most of my tradable assets are up about 10% from the summer. I'd like to claim some highly skilled reasoning for this action, but it was just a feeling (as they say the hardest part of investing is keeping control of the monkey in front of the screen)
Do you suggest this as required reading link
|
|
|
Post by Deleted on Feb 8, 2019 13:44:04 GMT
Bobo, as any "full no", is the best friend of Yogi and is a North American brown bear who lives in Jellystone Park, but your point is well made. :-)
|
|
james100
Member of DD Central
Posts: 974
Likes: 1,185
|
Post by james100 on Feb 8, 2019 15:13:44 GMT
I tend to look at this as an imperfect blend of: 1. total gains accumulated (obviously) 2. offsettable losses (that are ready to be crystallized) 3. costs of transaction (sell, repurchase, spread and any applicable forex cuts if dealing in non GBP assets without a multicurrency acc) 4. future potential value (stability or financial) of transacting to rebalance an out of whack portfolio (e.g. de-risking from equities to lower return classes like gilts) 5. risk of being out of the market (e.g. 1 min for bed and isa or direct substitutes for 30 days for non bed-and-isa where no direct substitute exists) 6. potential risk of storing/accumulating gains for future disposal under possibly different conditions (eg tax law or change in circumstances dictating different tax position under existing tax law) I'll be going through this end of current tax year (to take CGT allowance, and rebalance portfolio), then end April partial (bed and ISA to fill next year's ISA allowance) and rest of next year's CGT allowance at the same time/soon after (non-ISA direct substitution of VUKE to ISF) in case of GE bringing increased risk of Labour gov and more punitive tax laws. So, looks like I agree with pom: "it depends".
|
|
|
Post by Deleted on Feb 9, 2019 23:06:43 GMT
FAANGS are generally very volatile assets and I'm not sure a B&H would naturally add those to their holdings I won't comment on the majority of your post, except to say if it works for you great, but I'm still not entirely convinced of the merits of what seems to be a strategy of making decisions predominantly off the back of the writings in the Economist. I say this both because of the nature of the content and the general editorial process (both itself and the unavoidable lag). Don’t misunderstand me, i’m not doubting the Economist is a decent publication. However, in relation to FAANGS. I'm afraid I don't buy your counter-argument. Either you're a buy and hold or you're not. Sure FAANGs might not meet everyone's risk profile, but that's a different kettle of fish as to whether or not they can be considered b&h assets. Personally, in one of my B&H portfolios I hold two of the aforementioned (I certainly wouldn't buy all FAANGS ... but the two I have are worthy causes). I've held them for some time. I don't give two hoots to the short-term volatility caused by idiotic day-traders. However I can tell you that holding those assets has been rewarding (I've made back the book cost and then some !). In many ways I agree with you. I hold my version of Faangs, but not in a B&H section it just feels too volatile for my levels of stress and comfort.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 10, 2019 17:13:43 GMT
FAANGS are generally very volatile assets and I'm not sure a B&H would naturally add those to their holdings I won't comment on the majority of your post, except to say if it works for you great, but I'm still not entirely convinced of the merits of what seems to be a strategy of making decisions predominantly off the back of the writings in the Economist. I say this both because of the nature of the content and the general editorial process (both itself and the unavoidable lag). Don’t misunderstand me, i’m not doubting the Economist is a decent publication. However, in relation to FAANGS. I'm afraid I don't buy your counter-argument. Either you're a buy and hold or you're not. Sure FAANGs might not meet everyone's risk profile, but that's a different kettle of fish as to whether or not they can be considered b&h assets. Personally, in one of my B&H portfolios I hold two of the aforementioned (I certainly wouldn't buy all FAANGS ... but the two I have are worthy causes). I've held them for some time. I don't give two hoots to the short-term volatility caused by idiotic day-traders. However I can tell you that holding those assets has been rewarding (I've made back the book cost and then some !). What are the two FAANGS? Amazon and Apple? or Google? my guess!
|
|