Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 19 Jan 2024 15:36:57 GMT by
I have had several redemptions from a private investment fund - which has increased in value - over a period of years. Starting from the first withdrawal, how do I calculate a schedule showing the gains each year, and my next withdrawals so the capital gains tax liability is just enough to keep within my annual allowance each year? For example: invested £350k, grows to £500k, year 1 first withdraw 75k, year 2 withdraw £75k, year 3 withdraw £50k, year 4 withdraw £25k. Fund value for example at year 1 withdrawal is £500k, yr 2 £430k, yr 3 £360k, yr 4 £330k, yr 4 £310k. Can you please set out the formula and an example calculation as I am struggling with this, even after my accountant tried to explained it. Regards, Tom
Posted Tue, 23 Jan 2024 12:50:15 GMT by HMRC Admin 32

We can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to seek the guidance of an accountant or other financial professional.

Thank you.
Posted Tue, 23 Jan 2024 18:46:48 GMT by
Thanks, but this was just an example, I'm just looking for a formula, just the principles behind such a calculation - there must surely be official HMRC guidance on this. It's just I don't seem to be able to find any in the tax manual matching my case - multiple withdrawals over a period of years. If you could just point me in the right direction, that would suffice. Regards, Tom
Posted Fri, 26 Jan 2024 11:56:05 GMT by HMRC Admin 25
Hi Tom Entwistle,
Please refer to:
Shares and Capital Gains Tax (Self Assessment helpsheet HS284)
And associated links.
Thank you. 

You must be signed in to post in this forum.