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Partial Encashment to fund ISA

Practical Issues
Alaric
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Re: Partial Encashment to fund ISA

#288054

Postby Alaric » March 2nd, 2020, 4:17 pm

Snorvey wrote:If I have a non ISA unit trust investment worth 100k today which was purchased in 2010 for 50K then that's a 100% gain (or £50,000)


After the transaction to raise £ 20,000, you have an investment worth £ 80,000 on a purchase price of £40,000.

Chrysalis
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Re: Partial Encashment to fund ISA

#288059

Postby Chrysalis » March 2nd, 2020, 4:43 pm

Yes I’d say you are correct.
I use a spreadsheet. Calculate average cost per unit/share of the asset in question (usually I’ve bought more than one tranche).
Look up current value per unit/share. Subtract cost price to give gain per unit/share. Calculate £12,000 divided by average gain to work out how many units/shares to sell to keep within the CGT allowance. Sell a few less to make sure.
(Obviously you can change the calculation if you only want to sell £20k worth, but why wouldn’t you want to use the whole allowance?)


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