Equities-based portfolios are being targeted by spread betting firm Spreadex through a new service intended to reduce exposure to CGT, stamp duty and commission costs.
The service works by offering investors the ability to gear their holdings via a spread bet, while still cashing in the majority of their holdings – and potentially gaining future returns free of CGT and other costs. The example given by Spreadex is as follows: An investor has 100,000 shares in a company, quoted at £1.99-£2.01 on the stock market; selling the shares would result in some £199,000 less broker commission. The service enables the investor to transfer the shares to Spreadex in return for £179,100; the remaining 10% of the value of the shares becomes a margin deposit with ...
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