Tax Loss Selling
We are approaching June and it’s a good time to start talking about tax loss selling in stocks, something that we should all think about in May rather than June. It works like this.
Assuming you pay Capital Gains Tax, many of you don't, on June 30th the tax man will freeze your portfolio, add up all the capital gains you've made this year, and all the capital losses, offset the losses against the gains and come after you for CGT on any net profit.
If your accountant hasn't reminded you then this is a reminder that you can minimise ("Defer" really) your capital gains tax liability this year by realising some losses as well as gains before the year end, rather than just holding on. Basically...Continue Reading