30 Day Rule Share Repurchase

meatandtwoveg

Hi. I bought some shares last year, at for example £1, I recently sold them for £2.

For example 30,000 shares, so £60,000.00 received and so a £30,000.00 profit.

Minus CGT allowance I would owe tax on £30k minus £12.3k.  I would need to pay this tax.

If I buy back the same shares (30,000) within 30 days of the previous sale at a price of for example £2.10. I hold these shares long term, I do not sell them within this current tax year.

Would I be required to declare the original purchase and sale of the 30,000 shares at a price of £1, and the sale of the same shares at a price of £2 on my tax return for the year 21/22?

Would I owe any CGT on the first original purchase or would the original purchase cost of £1 used to be calculated from when the eventual sale of the 30,000 shares takes place?

Thanks

Jeremy535897

This achieves nothing. The sale would be matched with the reacquisition at £63,000, resulting in a loss of £3,000 (plus dealing costs). You would still own 30,000 shares with a base cost of £30,000.

If you want to use your annual capital gains tax exemption, sell enough shares to produce a gain of £12,300. If you want to maintain your holding, replace the shares with a new purchase, more than 30 days after the sale. You will then average the cost per share for future disposals.