Does anyone know of I transfer in a GIA which has unrealised capital gains if I would have an immediate capital gains tax liability or not? Ideally shares are just transferred between suppliers and not sold a re-bought
Thanks, Nick
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Not easy to answer as it depends on the countries involved.
In Germany, at share transfer between accounts of the same person does not trigger a tax.
If you transfer them outside of Germany (or the EU, not sure), the original institution is not obligated to send information about the original purchase price and date for free. Withholding tax on capital gains is generally not collected in many broker’s jurisdictions like the USA. UK I don’t know.
So unless you have some very advantageous situation with pre 2009 share bought in Germany for example: Selling and buying them again makes things easier. The tendency is that taxes increase, so unless you are planning to move to a tax haven before selling, realizing gains some time in between might not be soo bad.
I’m aware that tax deferral generally increases lifetime returns. But depending on your situation I recommend a nuanced approach.
Thanks for your answer. I am based in the UK so probably best not to transfer to trading 212 as may get a large bill. There is a capital gains allowance of £3000 annually so I can crystallize gains over a number of years within my current trading account.
If you transfer inspecie there should be no tax due. You’re not realising gains you’re just moving assets.
Thanks, I was hoping the transfer is inspecie.