Shares in Nominee Account - How can HMRC Calculate CGT Due?

DuxassTight

I have shares acquired via an employee Sharesave scheme that are held in a nominee account. The most tax-efficient option would of course be to have put them in a stocks and shares ISA but that option was not available at the time (please don't preach about what I should or should not have done )

I now wish to sell some of these and I know I will have to pay CGT - but how can HMRC calculate what CGT is due? The share price is currently £28 which is way above the acquisition price of £8 to £15 depending on when I acquired them, so how can HMRC determine if I've sold cheaper or pricier shares? 

I don't think they can, so how do they work out how much CGT is due? 

Dazed_and_C0nfused

DuxassTight said:

I have shares acquired via an employee Sharesave scheme that are held in a nominee account. The most tax-efficient option would of course be to have put them in a stocks and shares ISA but that option was not available at the time (please don't preach about what I should or should not have done )

I now wish to sell some of these and I know I will have to pay CGT - but how can HMRC calculate what CGT is due? The share price is currently £28 which is way above the acquisition price of £8 to £15 depending on when I acquired them, so how can HMRC determine if I've sold cheaper or pricier shares? 

I don't think they can, so how do they work out how much CGT is due? 

The answer to your question is they don't, that's your job.

If they disagree or want more information they will open an enquiry into your return.

Bookworm105

DuxassTight said:

I have shares acquired via an employee Sharesave scheme that are held in a nominee account. The most tax-efficient option would of course be to have put them in a stocks and shares ISA but that option was not available at the time (please don't preach about what I should or should not have done )

I now wish to sell some of these and I know I will have to pay CGT - but how can HMRC calculate what CGT is due? The share price is currently £28 which is way above the acquisition price of £8 to £15 depending on when I acquired them, so how can HMRC determine if I've sold cheaper or pricier shares? 

I don't think they can, so how do they work out how much CGT is due? 

UK tax returns are always done on a self assessment basis 
If you do not know what you are doing you pay someone who does to do it for you, but you remain labile for the figures in all cases.

if you want to learn how to DIY your shares then read this: Capital Gains Tax and employee share schemes (Self Assessment helpsheet HS287) - GOV.UK (www.gov.uk)

DuxassTight

Bookworm105 said:

DuxassTight said:

I have shares acquired via an employee Sharesave scheme that are held in a nominee account. The most tax-efficient option would of course be to have put them in a stocks and shares ISA but that option was not available at the time (please don't preach about what I should or should not have done )

I now wish to sell some of these and I know I will have to pay CGT - but how can HMRC calculate what CGT is due? The share price is currently £28 which is way above the acquisition price of £8 to £15 depending on when I acquired them, so how can HMRC determine if I've sold cheaper or pricier shares? 

I don't think they can, so how do they work out how much CGT is due? 

UK tax returns are always done on a self assessment basis 
If you do not know what you are doing you pay someone who does to do it for you, but you remain labile for the figures in all cases.

if you want to learn how to DIY your shares then read this: *MSE won't let me post links yet*

Thanks, that's a useful bit of info. Despite trying to find out for myself, hence the post, I've not come across anything regarding a Section 104 holding which is what I appear to have... time to get the calculator out I think.

DuxassTight

So having burned the midnight oil somewhat, I've concluded that the shares I hold do indeed form a S104 holding. I'm not looking for specific financial advice here, just want to know if I'm on the right track to understanding the rules. The values I've used below are rounded for simplicity and I haven't factored in dealing costs or CGT allowances at this stage either - more work using HS284 example 3 is required!

With an average cost of £13 per share, the holding has cost me £20,500 to acquire, with a current market value of £43,800.

I want to sell 800 of these shares to realise £22,000. Am I correct in thinking that if the average price of the shares in the holding is £13 and I sell 800 shares at £27 (+£14 difference), my gain will be 800 x £14 = £11,200?