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What do you need to know ahead of the end of the tax year and is my approach sensible? : UKInvesting


Hi all!

This tax year has been my first ‘real’ year investing. I can honestly say I’ve found a new hobby, tested my brain during endless lockdowns and have earnt a good amount of money. (I worked out the other day that my unrealised profit since April ’20, equates to earning another 55% on top of my salary!) So a big thank you to this community!

I am conscious that the end of the tax year is approaching and I would like some advice and to test my thoughts with you all if that’s okay.

Current situation:

  • My realised profits are around £2000 outside of my ISA

  • My unrealised profits outside of my ISA are above the CGT allowance

  • In the new tax year I will invest ~£2000 a month in my new 2021/22 ISA so will hit the limit

My plan:

  • I’m concerned about rolling my unrealised profits outside of my ISA into the next tax year in fear that if I have to sell for whatever reason next year I could trigger CGT. Therefore at the beginning of March I plan to sell ~£20,000 worth of my investments (highest profits) that currently sit outside my ISA, put that money into a new tracker, once the 30 day buy back rule is over, I will then buy the shares back inside a new 2021/22 ISA in early April (Bed & Isa to reduce potential CGT bill).

  • In the new year I will put the ~£2000 a month into a GIA with the idea of doing the above again at the end of the 2021/22 tax year.

Would really appreciate your thoughts.

Thanks!

Nick



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