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Where Taxpayers and Advisers Meet

CGT - Foreign shares acquired through employer

Pavlos
Posts:21
Joined:Wed Mar 02, 2011 10:48 pm
CGT - Foreign shares acquired through employer

Postby Pavlos » Tue Nov 16, 2021 3:27 pm

Hi all

My employer is owned by a Canadian firm and runs an Employee Share Ownership Plan. It has no tax efficiency in the UK. We agree to purchase shares using net pay. In addition the employer adds 30% to the purchase. The employer portion is taxed as a payrolled benefit, i.e. I request to purchase shares using £100 of net pay. The company adds £30 to this and I pay tax on that £30 through payroll. The company then converts the £130 to USD (plan is administered in USD) and the value is used to purchase shares which are deposited in a share account in Canada (all administered by employer).

My question is on calculation of CGT when selling the shares. My understanding is that since tax/NI has been paid on the full acquisition price of all shares, CGT should simply be due on the difference between acquisition and sale.

If that's the case, how should this be valued? The shares are purchased monthly, and may be sold in parts. Say I had 100 share purchased over two years, and wanted to sell 50. Should I calculate the acquisition cost of the initial 50 shares in order to calculate the gain? Or should the acquisition always be based on the full holding, so pooling?

Thanks
Pav

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT - Foreign shares acquired through employer

Postby bd6759 » Tue Nov 16, 2021 5:37 pm

The shares are pooled. Each disposal is a fraction of the pool, subject to specific matching rules where disposals and acquisitions are within 30 days.


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