Trading Shares - Paying CGT

[mrmagoo2017]

My ISA allowance for this year is filled, so that option is a no go, and I have sufficient funds in my SIPP

I like to invest, I have quite a large sum in cash that id like to invest, and this will break the CGT limit. I would like to trade shares, which means buying a share, and then selling within a month, realising a 10-30 percent gain, this alone should put me over the CGT limit

I'm quite new to this, but I do realise once sold, CGT is payable. However, my main question is.. is there a system for this? Lets say i buy £50k worth of shares in a company, it goes up 30 percent, it is then worth £65k.. I will then have to put a certain amount aside for taxman

But then lets say I want to invest again, and it again incurs a profit and liability, this will all start getting very complicated, with different tax amounts for each shares

It is a difficult situation for me to ask, but its mainly, how much do I need to put aside for taxman with differing amounts?

Is it worth opening up a separate ltd company just for this?

[bd6759]

CGT is paid at 10% or 20% (depending on the amount of your total income and gains) of the difference between the buying and selling price. The arithmetic isn't complicated.

You would need to have a detailed discussion with an advisor before considering a closed investement company.

[mrmagoo2017]

CGT is paid at 10% or 20% (depending on the amount of your total income and gains) of the difference between the buying and selling price. The arithmetic isn't complicated.

You would need to have a detailed discussion with an advisor before considering a closed investement company.

so safe option is, when selling shares, just stick 20 percent of it in a interest account for end of tax year? If I have a surplus, even better

[AGoodman]

You pay tax on your net gains for the year, not on each individual gain, so the usual practice is to calculate net realised gains and losses at the end of the tax year and set aside the cash to pay the tax by the following January - if you are short of cash you can sell an investment or two. You can also realise any investments standing at a loss approaching 5 April to reduce your net capital gain for the year.

Your plan sounds unnecessarily complicated.

A company would be worse - you would be paying 19% tax at the corporate level and a lot more tax to get the profits out again. Once you have built up £5-10m you could consider a private fund, which avoids this