Moving Stockbroker

[Banquo]

Hi,

I'm looking to move online stockbroker.

I have 15 positions, some winners and and a few underperformers. I'd like to retain all the current positions. My current broker charges 35 euro per individual transfer. I'd rather not pay the 500 euro for this exercise.

I was thinking that one way to do it would be to sell the current losers and those at break even, in the market and re-open the position in the new broker at the same time.

I crystalize a cgt loss for tax purposes and eliminate the transfer fee. It should save 300+ euro I think.

I wanted to sense check this approach, am I missing something ?

Thanks in advance

 

[Corola]

You can't crystallise a loss on those stocks if you re-open them immediately. You have to wait four weeks for the loss to be offset against other gains.

Selling or disposing of shares

This page outlines the special rules which apply to Capital Gains Tax on shares

www.revenue.ie

A restriction on loss relief applies to shares sold and repurchased within four weeks. Any loss arising on the sale will only offset any gain made on a subsequent disposal of the repurchased shares.

 

[Connard]

You can't crystallise a loss on those stocks if you re-buy them immediately. You have to wait four weeks for the loss to be offset against other gains.

Selling or disposing of shares

This page outlines the special rules which apply to Capital Gains Tax on shares

www.revenue.ie

A restriction on loss relief applies to shares sold and repurchased within four weeks. Any loss arising on the sale will only offset any gain made on a subsequent disposal of the repurchased shares.

What happens if he sells at a loss later on? E.g. buys them a year ago for 100 euro, sells today for 80 euro and rebuys immediately for 80 euro. Then a few years from now sells for 85 euro. The 5 euro profit would be off set against the loss but would they still be able to use the 15 euro loss to offset against another share? If so, it kinda still does what he is looking to do which is avoid paying the fees for moving by selling the shares that have dropped in value.