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FTSE Funds and CGT - bed and '....'?

Practical Issues
onthemove
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FTSE Funds and CGT - bed and '....'?

#289342

Postby onthemove » March 9th, 2020, 12:46 pm

I think this used to be the case, and haven't heard otherwise, but just checking...

Do, for example, iShares FTSE100 ETF (ISF) and Vanguard FTSE100 ETF (VUKE) count as 2 completely separate investments as far as CGT is concerned?

I mean, If I have a holding of ISF, then buy into the other (VUKE), then sell the ISF, is it only the holding of the ISF that is considered for CGT purposes at that point?

And likewise, can you therefore 'bed and something-or-other' from one to the other?

i.e. if I sell ISF then immediately buy VUKE, would that trigger a CGT 'event' for the ISF holding, or would the 30 day rule apply so it would still count as a continuous holding? (My understanding is the former, but just want to check if there've been any changes that I've missed or misunderstood)

Thanks.

Alaric
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Re: FTSE Funds and CGT - bed and '....'?

#289358

Postby Alaric » March 9th, 2020, 1:17 pm

onthemove wrote:(My understanding is the former, but just want to check if there've been any changes that I've missed or misunderstood)


It remains a loophole of sorts that a sale of a fund and purchase of a fund only triggers the 30 day rule when the fund you sell and fund you buy are identical. Having similar objectives doesn't count. I would expect it to stay that way unless there's aggressive marketing of using the loophole to manage CGT and it appears to be costing tax income.


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