I see in social media, typically US users, showing orders per stock i.e 100 shares at £60 each, 20 shares at £50 each for say tesla.
They then have an average share price but crucially are able to sell shares based on the price they paid i.e. sell 100 of the £60 shares at the current value of £100.
Hopefully my expansion makes sense, but such a feature would be great.
Thanks
That’s irrelevant really though surely?
Hello, shares that you purchase on our app are aggregated into one position. Due to that, all bought quantities are combined, and the price is averaged.
Seeing each position purchased with an instrument is not currently possible on our Invest and ISA apps. However, I’ll pass your feedback onward and update the thread if this changes in the future.
The ‘average’ calculation works, however I think such an option would give retail investors the ability to sell stock at prices of there choosing i.e. sell your £100 share, rather than your £50 share. Further, it allows for dabbling in a stock without ruining older or current positions.
Perhaps it could be an advanced option at the least?
Tax rules are different between the UK and US.
In the US you can pick which ones to sell to manage your tax liabilities. In the UK, you can’t - the purchase price is calculated as the average.
The IRS always uses FIFO for calculating purchase price for capital gain. So there isn’t any choice, the tax liability is determined by the IRS.
I thought FIFO was the IRS default, but you could opt for a different method. Happy to stand corrected though - I’m UK based so US tax isn’t something I’ve looked at too much.
Key point though - you can’t cherry pick particular sales for tax purposes in the UK.