CGT on part disposal of investments

Aidanmc

Ok, i understand the example below.

However, if in the following tax year Jane wanted to part disposal again, lets say another £20k, can someone show me how the calculation is done. Lets say CGT allowance is again £3K

Thanks

Keep_pedalling

It will be exactly the same calculation. 

eskbanker

The £142,800 would be replaced with the value of the reduced holding at the time of disposal, and the acquisition cost would be £85,994 instead of £100K.

Hoenir

£20,000 / Current Value x £85,994 = £x

Aidanmc

eskbanker said:

The £142,800 would be replaced with the value of the reduced holding at the time of disposal, and the acquisition cost would be £85,994 instead of £100K.

Thanks, that the clarification i was looking for.

Aidanmc

Just continuing on this thread with another query re CGT calculation.

During 2017/18 i invested 15k Euro in an investment fund with Guinness Asset Management

In 2019 i switched this to another Guinness fund, the value at the time was 17,397 Euro

I didnt declare the capital gain (not sure i needed too) on tax return and had no other capital gains that tax year.

Today the Guinness fund is valued around 30k Euro.

If i were to sell this asset completely would this calculation be correct/

30,000 - 17,397 = 12603eur

converted to gbp = £10,817 - 3000 CGT allowance = £7817

£7817 x 10% =£781 CGT payable ( basic rate tax payer)

I have not taken into account any ERI, which i have been declaring on tax return in recent years

[Deleted User]

That looks fine. However - make sure that you use the conversion rate at both the time of acquisition and sale - don’t simply apply  the conversion rate on the euro gain.

i.e. €30000 (converted to £) less €17397 (converted to £) = gain. Not €12603 converted to £.

Aidanmc

[Deleted User] said:

That looks fine. However - make sure that you use the conversion rate at both the time of acquisition and sale - don’t simply apply  the conversion rate on the euro gain.

Oh right, i wasnt sure actually when to apply the conversion rate.

Re the ERI the fund has generated over the period, do i simply convert it to gbp at the distrubition date every year and deduct it from the capital gain at sale?