what is theCGT position with regard to an investment of say listed AIM 120k shares @ apr11 and the sale and repurchase as below
since Apr11 - sales of blocks of 20k and some repurchases have been made during the ytd. Some of the repurchases are just within 30 days of the previous sale. Some beyond 30 days
Holder is not a trader. the shares/investment is key investment holding. He is just trying to realise the CGT annual allowance tax free gain [ can't blame him !]
What is the cgt position - does one exclude the sale/purchase within 30 from CGT value or is there an averaging in this instance.
Also the cost for 'sales' are being recognised at the weighted portfolio cost/share @ disposal date.... is this correct. withthe number of transactions does seem a logical approach without any massively expensive MATCHING LIFO/FIFO software
many thks
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Matching rules
As I understand it the basic calculation is as follows:
Purchase 1.1.10 200 shares cost 200
Sale 1.2.10 100 shares proceeds 150
Purchase 28.2.10 100 shares cost 180
new position
purchase 1.1.10 200 cost 200
Last two transactions matched together with a loss or £30 instead of a gain of 50 had you matched the share sold with the initial purchase.
I am afraid that I do not quite understand the final point - the actual cost is the only amount allowed - there is no pooling now