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Where Taxpayers and Advisers Meet

CGT on shares purchased before a company floated

windi64
Posts:2
Joined:Thu May 12, 2022 6:12 pm
CGT on shares purchased before a company floated

Postby windi64 » Thu May 12, 2022 6:35 pm

Hi,

I made an investment in a company startup in 1999. I was issued shares in the company at that time.
In 2018 the company floated on the London Stock Exchange and I was issued a number of shares based on a multiple of the number of my original shares.
In 2021 I sold a number of these shares which resulted in a large gain. I am currently completing my 2021-2022 Tax Return and need to know the most efficient way of working out my taxable gain.

Any advice would be greatly appreciated.

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT on shares purchased before a company floated

Postby pawncob » Fri May 13, 2022 10:04 am

There's only one way to do it.
sale proceeds less proportion of base cost.
eg Investment £5000, resulting in 10,000 shares (after scrip issue). Sold 2000 shares. Base cost 2/10 of £5000.
With a pinch of salt take what I say, but don't exceed your RDA

windi64
Posts:2
Joined:Thu May 12, 2022 6:12 pm

Re: CGT on shares purchased before a company floated

Postby windi64 » Sat May 14, 2022 5:01 pm

Hi pawn cob,

Many thanks for the info.


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