Tax-Loss Selling One firm of brokers calls attention to the
fact that it is less than two months to April 5, which marks the end of the first year of the new capital gains tax. Sales for tax-loss purposes should therefore be considered and, as these will be confined to a relatively limited number of shares, they could have a temporary adverse effect on some share prices. In the list of shares showing a substantial loss since budget day are the following:
Budget Day Recent Price Price ' Fall
Anglo Auto Finance 1/-
4/9
'3/-
36.8
Anglo Norness Shipping £1
33/101 20/101 38.4 British Printing 5/- 19/6
13/-
33.3 Carrier Engineering 5/- 24/- 17/6 27.1 Gwent and W. of England 1/- 5/91
4/-
31.8 Head Wrightson 5/- 19/6 131- 33.3 ICT £1 44/6
29/-
34.8 Marston Valley Brick 5/- 15/7.2* 11/- 29.5 Nairn and Williamson £1 19/7f 13/6 31.2 Photo-Me-International 4/- 13/9 8/74 37.3 Pontins 2/- 4/01 3/- 26.2 Southcros 5/- 13/71 8/9 35.8 Swan Hunter £1 24/- 17/9 26.0 United Real Property 5/- 23/6 15/6 33.3 Wilkinson Sword 4/- 40/- * 25/6 36.2
Tax-loss consideration should not be allowed to obscure the investment merits or demerits of the individual shares. If the share is likely to recover quickly, the investor should hold, because he will enjoy a tax-free 'run-up' to the price at which the tax begins to apply. Adjusted for scrip issues
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