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Capital gains reporting on free shares
mills112
Posts: 390 Forumite
I got free Lloyds shares when my building society demualised many years ago. It was purchased back through a compulsory purchase and I got £400 for it.
I need to declare this as capital gains as I have other capital gains to submit on my tax return (I have made more than 50k capital gains on other assets) so this will also need to be disclosed, otherwise it wouldn't be a concern because of its small amount. Am I right in my understanding that I will need to disclose this small gain as well?
Do I declare this as zero acquisition value so capital gains is £400? Do I describe this as free shares on building society demutualisation?
I searched on google and it seems to come up with this article which refer to the deposit account value, which got me a bit confused.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13028
I need to declare this as capital gains as I have other capital gains to submit on my tax return (I have made more than 50k capital gains on other assets) so this will also need to be disclosed, otherwise it wouldn't be a concern because of its small amount. Am I right in my understanding that I will need to disclose this small gain as well?
Do I declare this as zero acquisition value so capital gains is £400? Do I describe this as free shares on building society demutualisation?
I searched on google and it seems to come up with this article which refer to the deposit account value, which got me a bit confused.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13028
0
Comments
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There have been recent threads on this; these are the preference shares Halifax Bank issued to Birmingham Midshires members when it bought it: yes, zero acquisition cost.mills112 said:I got free Lloyds shares when my building society demualised many years ago. It was purchased back through a compulsory purchase and I got £400 for it.
I need to declare this as capital gains as I have other capital gains to submit on my tax return (I have made more than 50k capital gains on other assets) so this will also need to be disclosed, otherwise it wouldn't be a concern because of its small amount. Am I right in my understanding that I will need to disclose this small gain as well?
Do I declare this as zero acquisition value so capital gains is £400? Do I describe this as free shares on building society demutualisation?
I searched on google and it seems to come up with this article which refer to the deposit account value, which got me a bit confused.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg13028
Similar thread with some external links: https://forums.moneysavingexpert.com/discussion/6630697/original-share-price-for-abbey-national-santander/p11
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