Best strategy on using past capital losses against unrealised capital gains?

[Protocol]

I bought Ryanair shares at various times since 2008.

I also bought the four Irish banks, and have unrealised capital losses on these bank shares.

In 2021 I sold all the Ryanair shares and the PTSB shares.

I bought back half the number of Ryanair shares a week later at 15.33.

I submitted a CG return, using the capital losses on Anglo Irish Bank and PTSB against the capital gains on Ryanair. As a result, I paid no CGT.


Now it's 2025, and Ryanair have reached 23 euro. I wish to hold shares in this company for the long-term.

Should I sell both the AIB shares and Ryanair shares this year, realising the loss and gain, and then buy back Ryanair at 23 euro, thus establishing a new higher base cost?

The main cost here is the 1% stamp duty, about 100 euro.


Or am I missing something? Should I simply continue to hold AIB and Ryanair into the future? I have no particular pressing need for cash.

 

[AJAM]

Should I sell both the AIB shares and Ryanair shares this year, realising the loss and gain, and then buy back Ryanair at 23 euro, thus establishing a new higher base cost?

Yes that is a sensible strategy.
And also don't forget The first €1,270 of taxable gains in a tax year are exempt from CGT.
So if you have, say 5K losses of AIB, you should sell enough Ryanair to make a gain of 6,270 which would all be tax free then.

 

[Brendan Burgess]

Should I sell both the AIB shares and Ryanair shares this year, realising the loss and gain, and then buy back Ryanair at 23 euro, thus establishing a new higher base cost?

I don't see how that works? Can you show your calculations of both transactions and some future transaction.

Here are mine - ignoring annual allowance and costs of trading.


Losses on AIB shares : €8,000
Bought 1,000 Ryanair at €15 – base cost €15,000

If you sell your shares now and rebuy

Sell 1,000 Ryanair @ €23 - €23,000

Profit €8,000

Loss €8,000 No CGT



Buy 1,000 shares @ €23 = €23,000

Sell when shares are worth €33 = €33,000

Capital Gain €10,000



If you hold onto the shares

Sell 1,000 shares @ €33 = €33,000

Cost 1,000 shares @ €15 = €15,000

Capital Gain €18,000

Less loss on AIB shares: €8,000

Capital Gain: €10,000

 

[AJAM]

Sorry, Brendan is right. There's no real advantage to flipping them now, unless you are going to sell the AIB.
And yes it would end up costing you the 1% plus any bid ask spread.

 

[Protocol]

Thanks to both of you.

I won't do anything.