How do I work out CGT loss following the sale of shares

Pooying

Bank in 2002 and 2004 I bought shares via an employee share save scheme at 'x' pounds per month in both cases over a three year period, so I know how much I originally paid for them. In truth I forgot about these shares for a while and thought thankfully I had sold all my Nat West shares before the value plummeted. Over the years these two portfolios were subject to a share split (if I recall correctly) but definitely a share consolidation where for every 10 shares you had you received one back. I am now considering selling them, but have no idea how I work out the CGT loss (as I cannot believe I could possibly have made a gain). Can anyone explain? Many thanks in advance.

sgthammer

You need to contact the registrar, which should be named on the share certificate or in the T&Cs of the scheme, if you still have either. Checking the stock market might reveal if the shares are still trading at all and give you the info you need to work out an indicative price, but you won't know the exact value until you've sold. Once the transaction is complete, knock off any costs you've incurred (sensible ones for e.g. postage, not billing for your time reading the FT or anything silly) and you'll get your loss/gain for tax purposes. There's little point trying to work it out to the penny in advance.

wmb194

Pooying said:

Bank in 2002 and 2004 I bought shares via an employee share save scheme at 'x' pounds per month in both cases over a three year period, so I know how much I originally paid for them. 

In truth I forgot about these shares for a while and thought thankfully I had sold all my Nat West shares before the value plummeted. 

Over the years these two portfolios were subject to a share split (if I recall correctly) but definitely a share consolidation where for every 10 shares you had you received one back. I am now considering selling them, but have no idea how I work out the CGT loss (as I cannot believe I could possibly have made a gain). 

Can anyone explain? Many thanks in advance.

BIB. So you know how much you paid? 

So should be easy: the net proceeds of selling them all* -  the cost you paid to buy them = your loss or gain.

You can use current year capital losses against current year gains or you can report the loss to HMRC and carry it forward to future tax years.

NatWest's current price per share is 551.4p (£5.514).

https://www.londonstockexchange.com/stock/NWG/natwest-group-plc/company-page

*You can deduct costs that directly relate to the sale but it's usually just dealing commission.

eskbanker

wmb194 said:

Pooying said:

Bank in 2002 and 2004 I bought shares via an employee share save scheme at 'x' pounds per month in both cases over a three year period, so I know how much I originally paid for them. 

In truth I forgot about these shares for a while and thought thankfully I had sold all my Nat West shares before the value plummeted. 

Over the years these two portfolios were subject to a share split (if I recall correctly) but definitely a share consolidation where for every 10 shares you had you received one back. I am now considering selling them, but have no idea how I work out the CGT loss (as I cannot believe I could possibly have made a gain). 

Can anyone explain? Many thanks in advance.

BIB. So you know how much you paid? 

So should be easy: the net proceeds of selling them all* -  the cost you paid to buy them = your loss or gain.

You can use current year capital losses against current year gains or you can report the loss to HMRC and carry them forward to future tax years.

*You can deduct costs that directly relate to the sale but it's usually just dealing commission.

OP implies that most had already been sold, so it's not as simple as aggregate purchase cost but unit cost does need to be worked out, which needs the detail of the subsequent splits in order to correlate with the equivalent number of units today.

wmb194

eskbanker said:

wmb194 said:

Pooying said:

Bank in 2002 and 2004 I bought shares via an employee share save scheme at 'x' pounds per month in both cases over a three year period, so I know how much I originally paid for them. 

In truth I forgot about these shares for a while and thought thankfully I had sold all my Nat West shares before the value plummeted. 

Over the years these two portfolios were subject to a share split (if I recall correctly) but definitely a share consolidation where for every 10 shares you had you received one back. I am now considering selling them, but have no idea how I work out the CGT loss (as I cannot believe I could possibly have made a gain). 

Can anyone explain? Many thanks in advance.

BIB. So you know how much you paid? 

So should be easy: the net proceeds of selling them all* -  the cost you paid to buy them = your loss or gain.

You can use current year capital losses against current year gains or you can report the loss to HMRC and carry them forward to future tax years.

*You can deduct costs that directly relate to the sale but it's usually just dealing commission.

OP implies that most had already been sold, so it's not as simple as aggregate purchase cost but unit cost does need to be worked out, which needs the detail of the subsequent splits in order to correlate with the equivalent number of units today.

I read that as them 'thinking' they'd sold them when they hadn't but the OP can confirm. 

The beauty of selling things for a stonking loss and you don't care about using it against other gains or carrying it forward is that you can be quite sloppy in your accounting but perhaps the OP does care...

This chart should account for all of the share splits/consolidations so they're not in danger of making much of a gain /s:

Pooying

To clarify I joined Nat West back in 1982 and over the years entered into many of these employee share save schemes. You could buy shares over a 3, 5 or 7 year period spending up to a maximum of £250 per month. Each portfolio had a unique number. 

Over time I sold the various portfolios making sure that I stayed under the annual capital gain allowance. Somehow I lost sight of these two and then in 2018 I found the original paperwork together with new share certificates issued after the share consolidation. From the responses received once I sell these shares it will be pretty easy to work out my unfortunate losses. I doubt I will live long enough to ever realise a profit.