Iām in Bed and Breakfast hell thanks to myself and trading too often on the phone.
I have acquired and sold shares a few times and Iām not too sure how to report this oneā¦
Shares
Price
Total
30/09/2020
SELL
86
3.3
283.8
30/09/2020
SELL
2
3.2
6.4
17/09/2020
BUY
50
3
150
10/09/2020
SELL
25
2.9
72.5
10/09/2020
BUY
41
2.5
102.5
08/09/2020
BUY
11
2.5
27.5
08/09/2020
BUY
11
2.5
27.5
In this other real example I have acquired 510 shares in different operations, then sold the 510 then bought 1433 and added moreā¦ again a cellphone app mess but how would I proceed for this too ?
Shares
Price
Total
18/03/2021
SELL
1238
0.333
412.25
10/03/2021
SELL
700
0.335
234.50
25/02/2021
BUY
331
0.302
99.96
22/02/2021
BUY
174
0.287
49.94
12/02/2021
BUY
1433
0.279
399.81
29/01/2021
SELL
191
0.256
48.90
28/01/2021
SELL
191
0.267
51.00
05/01/2021
SELL
128
0.244
31.23
21/12/2020
BUY
116
0.257
29.81
01/12/2020
BUY
118
0.252
29.74
19/11/2020
BUY
127
0.235
29.85
09/11/2020
BUY
123
0.203
24.97
09/11/2020
BUY
26
0.200
5.20
If you could help with those two calculations it would be amazing, I just need to grasp the way HMRC wants itā¦do they want a line for each disposale(sale) ?
My thinking is the 25 shares sold 10/9 have the basis cost of 25 shares bought the same day. The sales 30/9 have the basis cost of the all the others. But since you have bought and sold 113 shares in total and have no residual it wonāt really make any difference how you compute it.
In the second example the 05/01 sale takes its cost basis from average price of all previous purchases. Those are a. Section 104 holding.
The 28/01 and 29/01 sales take cost basis from the 12/02 purchase because of 30 day bnb rule. The March sales take their cost basis from the average price of all other purchases, excluding those which have already been matched against the previous sales. What remains is a Section 104 holding with a certain price per share you can compute.
Also, yes, try the calculator, it is good. (See below - it took me less than 10 minutes to format and run your data through the calculator).
Yes, HMRC wants a line in your attachment for each disposal. The calculator produces exactly the information you need for each line. But the information that goes in the body of the return is only the summary totals. The calculator shows this in its final line of output. If ABC and XYZ had been your only traded investments, the calculator would do them together and summarise as
Also the calculator seems wrongā¦ why is it taking the 2 and 3 sale from the buy of 1433 shares that happens in future ? It should take them from the first Section 104 holding which is 510 shares.
Coincidentally, Iām now working on a new calculator that will handle Excess Reportable Income on ETFs. It will work for individual stocks too. It will be a python calculator like my last one.
@dropbrick Iām not sure how to help you as I donāt know much about this calculator you are using but I know the 30 day rule will match disposals (sells) against acquisitions (buys) made 30 days afterwards and this is before any remaining amount is matched against the section 104 holding rules.
@dropbrick The calculator is right. It is matching the sale first to purchases the same day, then to any purchases that take place within 30 days after, and finally matching to any Section 104 holding of previous purchases.
You do not need to report to HMRC all your buys. I think all you need is one line for each sale. You put down for each sale: Ticker, number of shares, date bought, date sold, cost, proceeds and gain/loss. There is no need to detail the price per share. The figure for cost is something you have your own working for, do not include in your tax return, but could explain to HMRC if ever they were to ask. HMRC will not fine you for lack of information. They will simply ask for more. You only need to be sure you can answer their questions from you records, if asked. The date bought figure is most usually āSection 104ā, but could be a same day, or future day if BNB rules applied to that sale.
I am not an accountant, but this is the way I have been doing it. I am sure I am paying the right tax. You can only incur a penalty if you are late or do not pay enough tax.
If Iām dealing with shares priced in EUR or USDā¦ how would you feed the data into the calculator ? Using the exchange rate provided in the statement to feed price per share in GBP ?
That would make the most sense. Must be a nice feeling to make more than the free CGT allowance. My only other thought for myself when I get to that threshold, is do I crystallise losses to offset some of the gains, and then re buy the stock after a set period. Problem being the odd chance you miss any recovery on the loss side. I havenāt worked out how much the buffer could be worth. The CGT saving could be a small buffer I guess.
Ouch! Yeah my work doesnāt allow me to trade in the opposite direction in a 60 day period, so I doubt I would ever get that far. It has however made me think I want to spread my ISAās but I only like opening up an ISA when I can in specie in or out.
Yes, you could use the rate in the statement. But no rate is given for dividends. I like to convert non-GBP currency to GBP using a vlookup into a Google sheet that has the whole year of daily exchange rates, produced with a one line googlefinance() function. I find this helpful for tax computations and keeping track of basis costs.
SELL: 25 ISHARES on 10/09/2020 at Ā£87.85 gives LOSS of Ā£1.25
SAME DAY TRADE Matches with:
BUY: 25 shares of 41 at price Ā£87.90
RESULTANT TRADE: B ISHARES 10/09/2020 16 87.90 0.00 0.00
CALCULATION: LOSS = Ā£1.25 = ( 25 * 87.85 - 0.00)
( 41 * 87.90 + 0.00 + 0.00) * ( 25 / 41 )
SELL: 88(2) ISHARES on 30/09/2020 at Ā£89.08977 gives GAIN of Ā£84.94
Matches with:
BUY: SECTION 104 HOLDING. 88 ISHARES shares of 88 bought at average price of Ā£88.12455
CALCULATION: Gain = Ā£84.94 = ( 88 * 89.08977 - 0.00 )
( 88 * 88.12455 )
CURRENT PORTFOLIO
Your portfolio is currently empty
STATISTICS
Total amount paid in stamp duty = Ā£0.00
Total amount paid in brokerās fees = Ā£0.00
Total number of trades = 7
Total number of buys = 4
Total number of sells = 3
How do I report the 3 sells ? Ahall I just make two lines in the XLS for HMRC and report the 88 sell as 2 sells ?
____________
But Iāve traded so much thanks to my phone that I went over the 4xCGT total sellā¦ I actually made a loss for the tax year