john x;326560 wrote:Hello,
A little advice here would be appreciated by me as I've never had to deal with this before and am a bit clueless : My situation is that I inherited a little money and have put the bulk of it into an interest bearing account which will yield approx £1500 till April 2025. I also have a maxed out shares ISA and another standard share dealing account. The latter is doing much better then the former unfortunately and at the moment is up about £3500 (could well change but I thought I would try to understand what I need to do if it stays a winner). Anyway assuming that it stays this way until the new tax year does this mean I could sell £1500 of shares (with the aim of putting the money into the next tax years ISA) before the tax year ends which would bring me to the CGT limit and then fill in a self assessment form for HMRC?
For the avoidance of doubt, your interest yield is not a capital gain, therefore the £3000 capital gains allowance is unaffected by it (assuming that was what you were getting at re £1500+£1500).
Interest yield is subject to income tax, not capital gains tax, regardless whether it was made via inherited money.
Like Ian Eccles said, would recommend creaming off £3000 of a capital gain from your investment funds each tax year.
Future years' capital gain (or loss) calculation could get a tad complex though, if you only do a partial sell of your fund. Especially if you then buy more of it in your GIA at a later date. Strict record keeping or buy & sell unit prices recommended.
Personally, you might wish to consider selling the full fund (as thats a clear line in the sand for calculations), then immediately buy an identical or similar fund less your £3k capital gain. Keeps future gains calcs much simpler i.m.o. However there is a slight risk of the 'market' moving drastically whilst you are out of the fund for a day or three. You should not re-buy the same fund within 30days of selling, otherwise your gain wont have been realised as far as HMRC concerned.