CGT share repurchase

mika_dm

Dear Sir/Madam

I would be very grateful if you could help me with an issue regarding the Capital Gain Tax. I manage to get this from Gov.uk website:

'If you bought new shares of the same type in the same

company within 30 days of selling your old ones, there are

special rules for working out the cost to use in your tax

calculations.'

Now, my question is:

If I own 50 shares of Alphabet ticker GOOGL and sell them, if in less than 30 days I buy 50 shares of Alphabet ticker GOOG will the tax special rules apply to this transaction?

My dilemma is: it is the same company but there is a different type of shares.

Many thanks for all who can help me solve this 'riddle'.

Kind regards,
Me.

Cold_comfort

No, the special 30-day tax rule will not apply because the shares you sold and bought were of a different class.

The HMRC CGT manual confirms this.

MDMD

Different classes are treated as different shares so bed and breakfasting rules don’t apply.. GOOG and GOOGL trade at different prices as one has voting rights.

mika_dm

Thank you for explaining. I thought that will be the case, but never  hurts to double check.

It is handy when you want to get some gains tax free but don't really need the money and can reinvest in the same day in the same company.