Capital Gains Tax

pnw72

Hi

I want to sell some shares but want to keep under the new limit for CGT.

I've bought shares in one company at different times & at different prices.

I don't want to sell all the shares. Can I specify (if HMRC ask) the shares I want to sell so that I keep under the limit? eg. sell the shares I bought at a higher price, to show less of a profit.

I've worked out that the amount I want to sell, could go over the limit if I "sell" the lower priced shares.

Thank you in advance

Hoenir

The shares purchased are pooled and the purchase cost averaged in determing gains and losses. There's no negotiation with the HMRC. 

njkmr

Not sure if it's the same as CGT on property, but the allowance is £6000 per person, this year but is due to drop to £3000 in April . It was £12000 the year before so I would get a move on if it is the same rules for shares.

[Deleted User]

As above - if you sell some shares and don’t purchase more within 30 days, you need to average out the cost. 

If you hold 10000 shares in Z Ltd purchased in 50 separate transactions at a total cost of £18000, the base cost of each is £1.80. 

Sell 2000 now and the cost that you use to work out your gain is £3600

https://techzone.abrdn.com/public/personal-taxation/Practical-G-Share-match

[Deleted User]

njkmr said:

Not sure if it's the same as CGT on property, but the allowance is £6000 per person, this year but is due to drop to £3000 in April . It was £12000 the year before so I would get a move on if it is the same rules for shares.

Same allowance for property but the RATE of CGT is different. Last year’s exemption was £12300. 

pnw72

That's great. Thank you all.