Calculating CGT using Lodgement.

vacheron

Hi all.

Some expert advice needed for my wife's tax return if anyone feels up for it!   

Last October, (in anticipation of the Reeves CGT hike), my wife Bed and ISA'd her annual ISA limit by disposing of £20K of GIA shares and buying them back in her ISA.

She is now coming to do her tax return for 24-25, but the figures on her HL GIA page are somewhat confusing.

My first thought was that we would subtract the "Weighted Average Price Paid" (shown as 1216.23p in the Holding Summary section opposite the chart) from the sale price of 1,992 and then multiply by 1,005 to get the overall capital gain. 

We then noticed that the 1,216p price simply seems to only consider the two small divident reinvestment purchases in july 2022 and january 2023, and does not consider the Lodgement or transfer in prices, both of which are higher in both price and volume.

I am assuming that the lodgement is the original price paid for the shares which has been converted from a paper share certificate? and so I believe should reflect the purchase price if someone could confirm (google AI agreees, but I don't trust it!)... but what about the Transfer In shares? Or should these be included at all? 

Any help would be appreciated on how to do this, and how on earth can HMRC confirm that our calculations are correct when everything we can see seems to contradict everything else? 

We didn't have to worry about this in the April 2023 sale shown because the GGT threshold was £12,300 rather than the pathetic £3000 it is now!  :'(

eskbanker

If her April 2023 sale was of all 1,230 shares held at the time then that would have zeroed everything that had gone before, so the information presented about prices paid is indeed irrelevant.

CGT for the October 2024 sale needs to be calculated from the acquisition cost of the 2,200 shares transferred in, but where were they transferred in from, i.e. is that £15.1742 value the applicable one?

vacheron

Hi, Sorry about the delay in getting back to this thread. 

The 2,200 shares were gifted from me as a spousal transfer and prior to this had passed through at least 3 different trading companies since they were originally purchased (the account for the first two of which have long since been closed). So I've no idea how to go about determining the original price I paid for them.   

eskbanker

vacheron said:

The 2,200 shares were gifted from me as a spousal transfer and prior to this had passed through at least 3 different trading companies since they were originally purchased (the account for the first two of which have long since been closed). So I've no idea how to go about determining the original price I paid for them.   

Unless you can work out an estimated acquisition cost that can be supported by whatever paperwork you do have and/or public domain share price info, you'd need to use zero.

vacheron

eskbanker said:

vacheron said:

The 2,200 shares were gifted from me as a spousal transfer and prior to this had passed through at least 3 different trading companies since they were originally purchased (the account for the first two of which have long since been closed). So I've no idea how to go about determining the original price I paid for them.   

Unless you can work out an estimated acquisition cost that can be supported by whatever paperwork you do have and/or public domain share price info, you'd need to use zero.

I have some old documentation in the loft that I think could have some paper copies of the original share certificates amongst them. Gives me an excuse to go up there and get the christmas decorations down at least!