CGT on part disposal of shares

vandermist

I disposed of some shares in four portions in this tax year, and the gain amounts to more than the CGT allowance. The HMRC guidelines seem to say that I can use their online worksheet for calculating the value of any complete disposal, but not for a partial disposal. So my two questions are:

presumably this means that I can't use their worksheet for the first three sales, which are part disposals, but I can for the final sale, which was a full disposal of all remainaing shares?

And if I've understood that right - where then do they want me to show my calculations for the part disposals ?

[Deleted User]

Were the shares all purchased in one tranche?

There is no reason why you can’t use the worksheets showing four separate disposals that I know of.

vandermist

Yes, they were all bought in one tranche - but when I open the worksheet notes it states "You can't use the Working Sheet if the disposal is a part disposal", no reason given.

Presumably most sales of share are part disposals though, so it seems a strange rule.

Any other thoughts anyone ? How does anyone else declare part disposals of shares ?

[Deleted User]

OK - so you can’t use the working sheet. You can simply show the four separate disposals on the Capital Gains pages. It should be a simple calculation e.g 20000 shares purchased for £30000.
 First sale 4000 shares - proceeds 9000.
Gain 9000 - (4000/20000*30000)
9000- 6000 - gain is 3000. 

Now repeat for each further disposal.

vandermist

that sounds good, thanks for sharing 

Thrugelmir

If you pool the 4 transactions together you'll come out with the correct result. As the outcome was a total disposal. 

[Deleted User]

Hi,

you will know what each share cost you from your buy contract note, lets  say £1.

So if you sell 1000 at £1.50, 50p profit a share, so £500 profit,

then sell 2000 at £2.00, £1.00 profit a share, so £2000 profit,

so you've sold 3000 shares, overall profit £2500 (less costs).