Free shares - CGT?

CRAIGSVILLE1

Hi all,

I have approx £3k in my freetrade GIA from free share promotions over the years.
Does all the value of these shares count towards CGT for the year , when I sell them , or just the profit from when I acquired them ? 

Thanks

Hoenir

CGT is calculated on the difference between the base cost and the net selling proceeds. 

CRAIGSVILLE1

Ok, so my base cost was zero, if they were free.
So all free shares would count towards CGT , when I sell ? 

Thanks

Voyager2002

CRAIGSVILLE1 said:

Ok, so my base cost was zero, if they were free.
So all free shares would count towards CGT , when I sell ? 

Thanks

I hope not!

Your base cost was their price at the time they were given to you. Your taxable gain is the profit you have made by holding them.

masonic

Voyager2002 said:

CRAIGSVILLE1 said:

Ok, so my base cost was zero, if they were free.
So all free shares would count towards CGT , when I sell ? 

Thanks

I hope not!

Your base cost was their price at the time they were given to you. Your taxable gain is the profit you have made by holding them.

That would be my understanding. The challenge can be when you haven't kept records of the acquisition price. Though the difference between that and zero wouldn't be that large unless you have been very lucky.

Though if the shares were acquired as payment for introducing customers to the service then the base cost would be taxable as income in the tax year the payment was made.

CRAIGSVILLE1

masonic said:

Voyager2002 said:

CRAIGSVILLE1 said:

Ok, so my base cost was zero, if they were free.
So all free shares would count towards CGT , when I sell ? 

Thanks

I hope not!

Your base cost was their price at the time they were given to you. Your taxable gain is the profit you have made by holding them.

That would be my understanding. The challenge can be when you haven't kept records of the acquisition price. Though the difference between that and zero wouldn't be that large unless you have been very lucky.

Though if the shares were acquired as payment for introducing customers to the service then the base cost would be taxable as income in the tax year the payment was made.

Shares were given as bonus for transferring pensions. Only approx £500 profit so far.
I will probably just sell them this tax year, but good to know that I won't be over CGT allowance 

Thanks