Unfortunately my ISA is awash with stocks for which I have made considerable losses. This tax year, I have made some nice gains on other investments that I now need to pay Capital Gains Tax on. I was planning to offset my CGs by selling some of my “heavily in the red” stocks but am not permitted to do so whilst such stocks still sit in my ISA. I need to transfer them to GIA before selling but Freetrade doesn’t have this feature.
Anyone else experienced this problem and think this could be a good solution?
That’s because no such thing is allowed as far as I’m aware.
The only in-species transfer allowed that isn’t ISA to ISA is from a SIP. For everything else you have to sell to cash to withdraw the cash.
Just to note as it’s not 100% clear from your post, you pay CGT on relevant realises gains from sold investments, you don’t pay tax on investments with unrealised gains (not sold).
Ok, I read something that suggested it could be possible. My understanding was it was more of a FT-specific limitation rather than a legal one (hence the feature request idea).
Yes I am clear on that point. My proposal was to move a stock from ISA to GIA, then sell, then offset the loss against my overall CG liability.
It’s not possible without selling / rebuying. Where did you read this ?