New to CGT - calculation for Acc units partial disposal

helibird

Not sure if this is the right board
I want to realise my CGT allowance of £3000 for 24/25
I want to sell some of the shares in an Acc fund. If i bought N shares originally  and  I sell n shares I think my cgt would look something like this: profit = sale value - (original value*n/N) - accumulated dividends. My question is  do I subtract all the accumulated dividends to that point and carry forward no accumulation or just the amount proportional to the sale. There is no equalisation involved.

eskbanker

Everything needs to be worked out on a per unit basis.

helibird

So calculation is profit = sale value -(original value*n/N) - (acc div*n/N) and carried forward I have cost cfwd = original cost - (original value*n/N) and  div cfwd = acc divs - (accumulated dividends*n/N)

Daffodil1234

I'm also interested in this question as I have sold a part of a GIA account and want to check I am doing the right calculation when determining how to represent the gain.

Does anyone have any useful links to an idiot's guide / helpful software suggestions or do people just calculate their gain using individual spreadsheets ?

eskbanker

https://www.gov.uk/tax-sell-shares/work-out-your-gain explains the principle in simple clear language and links to a calculator.

EthicsGradient

I don't think that calculator does anything special about accumulated dividends, so doesn't explain things that well.

I think "profit = sale value -(original value*n/N) - (acc div*n/N)" is correct - you might put that as

profit = sale value - (original value + acc div) *n/N

as slightly simpler - your acquisition costs were "original value + acc div", and then you take the proportion that was partially sold.

If you have trading costs, you'd include them as 

profit = sale value - sale trading costs - (original value + buying trading costs + acc div) *n/N

(there should have been no costs associated with the accumulated dividends).

Your acquisition costs for the remaining N-n shares are

NewAcqCosts = (original value + buying trading costs + acc div to this point) * (N-n)/N

If you get more accumulated dividends after that, and you sell x shares later, your next profit would be 

next profit = sale value sale trading costs - (New AcqCosts + later acc divs) *x/(N-n)

You can express these values on a per unit basis - it's roughly the same complication.

Daffodil1234

Thanks to all for your comments / help.

I'm starting with the basics - I've withdrawn £6000 this year in total from a Nutmeg GIA, however this only shows at present in my Nutmeg reports as the total withdrawn of £6k - it doesn't state which precise shares were sold for me to be able to cash in.  I've written to Nutmeg to ask them how can I view this information (as I'd need to know the original buy price / final sale price of the shares, I think, in order to work out what was the profit or loss).

While I appreciate it's very likely I won't have made enough profit that I have to declare it at present, I want to ensure I know how I would prove this / calculate it, or in case I need to withdraw any more then it might take me over the £3k threshold.

If I've missed anything, please do say !

helibird

Thanks EssexGradient, I like the simplified version of calc. I will read the rest when I am more awake. Funds are in Hargreaves so no buying/selling costs just the 0.45% ongoing charge which I assume I can't use.

tigerspill

So just to clarify in my own head,  When you sell a %age of an asset, profit is the sale price minus the %age of the total cost - %age of the total income - sale fees?

EthicsGradient

tigerspill said:

So just to clarify in my own head,  When you sell a %age of an asset, profit is the sale price minus the %age of the total cost - %age of the total income - sale fees?

Yes, I think that's a correct calculation, and reasonable way to express it.