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

danm

NottinghamMan said:

eskbanker said:

NottinghamMan said:
u mentioned then that the working out on bases costs for two funds (Formula my word) is then not straightforward (for the likes of me).

I suspect that this dialogue has pretty much run its course but, for the record, I've never said that working out base costs for two funds is not straightforward - once you've established how to work out the base unit cost of holdings in a fund (or just read it from your platform if that can be relied on), it really isn't rocket science to repeat exactly the same calculation for another!

Perhaps you're confusing this with a different question you asked, where you were hoping there'd be a simple answer to 'how many units of each of two funds would I need to sell to reach my annual CGT allowance?', but even for that, it's not so much that it isn't straightforward as such but just that there are many valid answers rather than one....

What I can't do is spread the £12,300 allowance over 2 separate funds, and as u said may have to be done by my accountant or an accountant. 
Yes, your last point explains what I mean't. ''how many units of each of two funds would I need to sell to reach my annual CGT allowance?'
So that is probably how I need to word it when asking someone if they can do this for me. 

  if you can work out the Units to sell for Fund A and you can work out the units to sell for Fund B.... then you can also work out the gain per unit.
Lets just assume ; Fund A you made £1 per unit and on Fund B you made £2 per unit. 
you have £12,300 of CGT .....
so you can see that there are thousand of combinations of sales (12,298 A ; 1 B   or 12,000 A : 150 B  or 2 A ; 6149
these all sum to 12,300  - therefore you should also see there is no 'right' answer. could be multiple other factors that drive what fund you wish to sell. Maybe you want to apportion the 12,300  pro-rata based on total holding; or re-base the fund you think is likley to gain more going forward; or maybe do all Fund A this year, all Fund B next year etc. there is no magic answer here.

think of it as 'gain per unit' for each fund..... then its up to solve for the split, but making sure you don't bust the 12,300

NottinghamMan

danm said:

Yes, your last point explains what I mean't. ''how many units of each of two funds would I need to sell to reach my annual CGT allowance?'
So that is probably how I need to word it when asking someone if they can do this for me. 

  if you can work out the Units to sell for Fund A and you can work out the units to sell for Fund B.... then you can also work out the gain per unit.
Lets just assume ; Fund A you made £1 per unit and on Fund B you made £2 per unit. 
you have £12,300 of CGT .....
so you can see that there are thousand of combinations of sales (12,298 A ; 1 B   or 12,000 A : 150 B  or 2 A ; 6149
these all sum to 12,300  - therefore you should also see there is no 'right' answer. could be multiple other factors that drive what fund you wish to sell. Maybe you want to apportion the 12,300  pro-rata based on total holding; or re-base the fund you think is likley to gain more going forward; or maybe do all Fund A this year, all Fund B next year etc. there is no magic answer here.

think of it as 'gain per unit' for each fund..... then its up to solve for the split, but making sure you don't bust the 12,300

Yes thanks for this. Excuse me coming back to this after 7 months, but I did rebase in March & April thanks to all your's helps especially eskbanker person. 
Now I'm at the stage where I have enough in my Vanguard 60/40 funds for what I need to do next 6 years or so. So new stuff now I'm gonna' maybe put in TG2040 funds, so thought best get on here to see if there was any info I may interpret. But u may have just gave me idea with your text, as now I have two lots of funds (me & wife) too big to just sell maybe most of one of them, & either way, I'm only going to be able to sell part of one of the funds. So may just sell the max that just falls below the CGT £12300 limit & then invest that part straight into the 2040 fund. 

I'm gonna' look more into what u mention above on the gain per unit for each fund when my head is more clear next week, not Friday afternoon brain drain end of week. But I think u have explained it pretty good for my non Tax working out brain to understand.