Capital gains washing out the base cost on index funds to utilise the personal allowance every year

Lee_N

What about stamp duty and charges etc. Can these count as an expense against the gains?

eskbanker

Lee_N said:

What about stamp duty and charges etc. Can these count as an expense against the gains?

Yes, as explained in the gov.uk articles linked earlier.

Adyinvestment

I know you can't buy back in 30 days, but is there a rule stopping similar buys?

For examples could I sell a Vanguard "All World" ETF and then immediately buy a HSBC "All World" ETF?

eskbanker

Adyinvestment said:

I know you can't buy back in 30 days, but is there a rule stopping similar buys?

For examples could I sell a Vanguard "All World" ETF and then immediately buy a HSBC "All World" ETF?

As posted earlier:

eskbanker said:

Perhaps worth noting that the 30-day rule only applies if you repurchase exactly the same investment - you do have the option to buy something similar but slightly different, e.g. Inc units instead of Acc or vice versa, to avoid being out of the market for 30 days.

Adyinvestment

Oops missed that

Food for thought when investing out of tax wrappers though

ChilliBob

If you're disposing of an entire holding then it makes no difference to the final calculations
I tried both ways, working out the gain on each round of purchases vs the total gain against total paid (in a personal example). It would do for a partial sale of course. 

talexuser

Average price is easy to work out, but how do you work out dealing costs on partial sales?
The first purchase will have say stamp duty on a big amount so will be large cost, further dividend re-investments will have smaller amounts adding up.
At the point of partial sale  do you:
1 subtract the total of all costs up to that point, and rebase costs for further sales on the remainder to zero.
or
2 works out the proportion of costs up to that point, as a fraction of the shares sold compared to the total shares, and the remainder is the rebase of costs for future investments/sales?

Alexland

Adyinvestment said:

For examples could I sell a Vanguard "All World" ETF and then immediately buy a HSBC "All World" ETF?

You would struggle as the HSBC All World is an OEIC fund not an ETF. HSBC do have a Developed World ETF without the Emerging Markets.

dales1

talexuser said:

Average price is easy to work out, but how do you work out dealing costs on partial sales?
The first purchase will have say stamp duty on a big amount so will be large cost, further dividend re-investments will have smaller amounts adding up.
At the point of partial sale  do you:
1 subtract the total of all costs up to that point, and rebase costs for further sales on the remainder to zero.
or
2 works out the proportion of costs up to that point, as a fraction of the shares sold compared to the total shares, and the remainder is the rebase of costs for future investments/sales?

It works like your option 2, but with no need to maintain separate running totals for purchase costs, dealing fees and stamp duty.

All these costs of buying, are brought together in calculating your average cost for CGT purposes.

(The average cost as shown on your platform statement will include all these costs).

NB if you hold the same stock on multiple platforms, you will have to calculate the overall average for yourself.

talexuser

Thanks, yes my spreadsheet average includes costs and agrees with the figures shown on iWeb. So a partial sale is simple because subtracting average from the crystallised gain is already subtracting that portion of costs?