Investors who received shares in First Active, Irish Permanent and Norwich Union, can avail of a new telephone service operated by BCP Stockbrokers which can allow them to use up their capital gains tax allowances in the current tax year. BCP is offering what is known as a bed and breakfast service, which effectively allows investors to sell their shares and immediately buy them back at the same price. These deals are usually executed overnight and allow investors to realise the investment gain and offset it against their annual capital gains tax allowance.

A bed and breakfast transaction would be particularly attractive to First Active shareholders who received free shares as part of the flotation last year. For tax purposes these shares will be deemed to have had a value of 0p when issued to shareholders.

They have since risen substantially so by executing these deals, most small shareholders will avoid paying capital gains tax in the future. Individual investors have an annual capital gains tax allowance of £1,000 (€1,270) while a couple who jointly hold shares can realise up to £2,000 tax-free within the current tax year.

Anyone availing of the service will pay 1 per cent of the value of the transaction in stamp duty on Irish shares, 0.5 of a percentage point on British shares while US stocks are exempt from stamp duty. They will also be subject to a commission charge of £35. The service is available at www.bcp.ie or by e-mail at deal@bcp.ie or by phone at 01 661 7111.