DEl

eskbanker

Sebo027 said:

Yes, but let's say I invest a £10,000 lump sum in "X fund" and then invest another £1,000 every month for 20 years. I will have contract notes for every purchase stating the amount of units and cost per unit, stating what my £1,000 was able to buy at that time. Now 20 years down the line, I click sell on all holdings. Assuming I have made a huge "gain", how is it calculated? Do I literally need to comb through 20 years of contract notes (241 in this scenario) to work out what actual "gains" were made?

It would be quite simple in that scenario - you deduct your £250K outlay (plus all transaction costs) from the sale proceeds and that's your gain (or loss) for CGT purposes.

itwasntme001

bowlhead99 said:

itwasntme001 said:

Just wondering, am I right in believing that capital gains on foreign stocks that may be partly due at least to FX moves is counted for CGT purposes?  And the valuation for this on the buy and sell is whatever is stated in the contract notes?  No special adjustments need to be made at all?

The gain is the pounds value of the proceeds you get when you sell (whether or not you get the proceeds in pounds or some other currency) compared to the pounds value of the costs you paid (whether or not you paid in pounds or some other currency). If you're buying currency as part of the transaction to purchase the foreign-priced shares, you can use that exchange rate that you get, otherwise just use a daily spot rate from a credible source.

Also do foreign exchanges (e.g. GBP cash for USD cash) done with my broker (in my case II) count towards the CGT calculation

If not covered by the comment above and you're buying and selling some foreign currency independent of the timing of your stock purchases and sales, then yes technically a pile of dollars or whatever is something that could make a capital gain or loss over time, and you could try to do a separate calculation for it. Or just build your actual rates achieved into the costs and proceeds of the stock purchases and sales.

Thanks for the explanation for this.  I am still a bit confused with my particular situation.  Say for a £ stock I sold in the tax year I am doing the SA, I originally bought a few years back.  Some of the £ required to purchase this stock originally came from some USD dividends that I had accumulated and I converted this USD into £ prior to purchasing the £ stock.

How do I incorporate the exchanging of USD dividends into £ into the capital gains calculation for this particular stock?

Many thanks

eskbanker

itwasntme001 said:
I am still a bit confused with my particular situation.  Say for a £ stock I sold in the tax year I am doing the SA, I originally bought a few years back.  Some of the £ required to purchase this stock originally came from some USD dividends that I had accumulated and I converted this USD into £ prior to purchasing the £ stock.

How do I incorporate the exchanging of USD dividends into £ into the capital gains calculation for this particular stock?

You don't - the CGT calculation only needs the £ price paid for the stock you're selling, so where that money originally came from is irrelevant, although you'd have needed to declare it as divi income on your SA at the time.