re CGT on share sales of part holdings

re CGT on share sales of part holdings

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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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By Marion Hayes
24th Oct 2011 10:18

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

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