OK enough of the Madness…
Just discovered that it seems I cannot sell and buy back shares within a 30 day time period which is bad news for me as I had aimed at doing just that to take advantage of dips.
- Is this the case, will Freetrade stop me from buying back the same stock within 30 days of selling it?
How do day traders operate then? Do they have to wait 30 days before they can buy into something they recently sold? Doesn’t sound right to me but ‘I Know Nothing’ (yes, I know you just read that in the voice of Andrew Sachs)
I did find this on an accounting website as a way around this:
What are my alternatives?
Should you wish to buy back the shares within 30 days of disposal, you may use an ISA or self-invested personal pension (SIPP) to make the payment. With an ISA, the only limitation is the size of your annual allowance so this method is not one that can be used multiple times throughout the year.
Alternatively, the transfer of chargeable assets between spouses and civil partners can help reduce overall payable CGT. Married couples and civil partners can crystalize a gain by having one partner sell the asset, before the other buys it back (using a different broker). This keeps the investment within the family.
So is it the case that in a ISA I could buy back shares within 30 days? I have a GIA not an ISA. Is trading through an ISA not the same as a GIA in so far as you have a fund value and you allocate blocks of it to shares as you buy them? I don’t understand why you could not do this method ‘multiple times per year’ because of your anual allowance.
It’s true I could set up another account in my wife’s name, err I mean she could set up an account, and she could buy them back when they dropped. But still that would only mean being able to do that once per month as I’d still need to wait the 30 days from when I sold my shares initially to be able to buy them back.