Realised gains this tax year and losing positions still in the portfolio? Harvesting losses can offset the gain one-for-one. See your saving.
Realised gains so far, unrealised losses on positions you could sell, and the allowance you have already used.
Harvest of losses to cut this year's bill by
UK: harvested losses offset current-year gains first, then carry forward. Don't repurchase the identical share within 30 days (bed-and-breakfasting). Use a similar-but-not-identical fund to keep allocation.
Illustrative figures only. Wash-sale and share-matching rules vary by jurisdiction and broker; this is not tax advice. For your specific situation, consult a qualified adviser.
Worth tracks gains, losses, and the allowance window across every account so the harvest happens before the tax-year deadline rather than the night before. Join the waitlist.
Harvesting specifically means selling losers solely for the tax benefit, then maintaining overall portfolio allocation by buying a similar-but-not-identical asset. The harvested loss is locked in to offset gains or carry forward. Capitulation selling achieves the same tax outcome but with worse market-timing risk.
UK: unused losses carry forward against future capital gains indefinitely, but must be claimed within four years of the loss tax year. US: excess losses up to a few thousand a year can offset ordinary income; the remainder carries forward indefinitely. Either way, harvested losses do not expire.
Throughout the year, opportunistically. Many investors do a sweep near tax-year end. Waiting until the deadline often means missing opportunities: markets recover, losing positions return to flat or positive, and the harvest opportunity is gone.
No. Harvesting only works in taxable brokerage accounts. Inside an ISA, SIPP, 401(k), IRA or similar wrapper, gains and losses are sheltered already, so there is nothing to harvest.