I had asked this question a while ago in a different thread but didn't receive a response. If a married couple have share accounts in their own names can one sell loss making shares and the other purchase a similar amount in their name on the same day? This would lead to a CGT loss of one party while the couple would retain overall ownership of the shares at a lower cost. Seems a very tax efficient way to use the system if allowed.
Married couple selling and repurchasing the same shares in different accounts
- Thread starter declan11
- Start date
Thanks Gervan, we both have shareholdings that have decreased in value, primarily due to Covid. We believe long term these companies will be profitable so swapping ownership we can retain ownership at a lower cost and use these loses to eliminate tax on selling winners.
have you gains that you want to use the losses against, as remember the person buying the shares will have their cost at lower price, so if sold would be liable to all price increase versus this purchase price.
If you don't intend to sell then this is not an issue, but you don't want to have a greater gain in the hands of the new owner, with no gains for the former owner to use the created loss against.
Not sure how revenue would look at this type of transaction, but depending on the value might not be interested,
If you don't intend to sell then this is not an issue, but you don't want to have a greater gain in the hands of the new owner, with no gains for the former owner to use the created loss against.
Not sure how revenue would look at this type of transaction, but depending on the value might not be interested,
Never considered this, but transaction costs aside is there much difference?
for example
1) share bought at 10e
2) share sold at 6e - 4 euro tax loss
3) share bought at 6e
4) share sold at 20e tax on 14 euro
versus
1) share bought at 10e
2) share sold at 20e tax on 10 euro
Disadvantages could be transaction charges and it encourages you to sell your winners not your losers - which seems to be frowned on.
for example
1) share bought at 10e
2) share sold at 6e - 4 euro tax loss
3) share bought at 6e
4) share sold at 20e tax on 14 euro
versus
1) share bought at 10e
2) share sold at 20e tax on 10 euro
Disadvantages could be transaction charges and it encourages you to sell your winners not your losers - which seems to be frowned on.
Thanks. our investments are with an online broker so charges are small. We both have roughly the same amount invested.
Right now we each have 20% of our investment in one company in separate accounts which has tripled in value. While we understand that we should be slow to sell winners we feel we are over exposed in this position. The other 80% is invested in 10-15 other companies in each account, so about a total of 30 companies with small investment and one with too much. Our plan would be to reduce our exposure to this one company by selling some shares over time. We would also sell/buy some of our other "losers" so as to eliminate CGT on our profitable sale .
Looking at your example Ashambles, does it not make more sense to be in the position of paying tax on €14 profit than on €10 profit?
Right now we each have 20% of our investment in one company in separate accounts which has tripled in value. While we understand that we should be slow to sell winners we feel we are over exposed in this position. The other 80% is invested in 10-15 other companies in each account, so about a total of 30 companies with small investment and one with too much. Our plan would be to reduce our exposure to this one company by selling some shares over time. We would also sell/buy some of our other "losers" so as to eliminate CGT on our profitable sale .
Looking at your example Ashambles, does it not make more sense to be in the position of paying tax on €14 profit than on €10 profit?