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Where Taxpayers and Advisers Meet

CGT on shares

jed1
Posts:8
Joined:Sat Dec 01, 2018 11:40 am
CGT on shares

Postby jed1 » Wed Oct 02, 2019 2:19 pm

Is there an easy way to work out CGT on shares.? Husband buys and sells shares every few days. I need to keep a running total for our self assessment tax returns. We use one of the banks for our share dealing. The purchases and sales are listed by date as well as dividend reinvestment. Do the shares purchased from dividends count towards CGT.?

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: CGT on shares

Postby Jholm » Wed Oct 02, 2019 2:28 pm

The dividends reinvested will count towards the cost price.

Have a look at share matching rules on HMRC guidance. It can get sometimes get quite messy working out the cost pools.

In a nutshell.

1. Shares in the same company bought and sold on same day will be matched together for cost purposes.

Then...

2. Shares bought within 30 days of selling shares in the same company will be matched.

Then...

3. S.104 holding rule - all costs are pooled together to give a total cost to date. The price is apportioned per share (eg. 10,000 shares bought for £20,000 in total.... Sold 5,000 - cost price for CGT would be £10,000)

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT on shares

Postby AGoodman » Thu Oct 03, 2019 11:49 am

Just keep a spreadsheet of sum(s) paid, costs of purchase and sale and gain.

It gets more complicated if you have repeated transactions of the same stock and you will need to take account of Jholm's guidance.

Some platforms will produce a taxpack for you with the calculations but that's less likely for those where the user makes the decisions.


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