Allowable Costs When Calculating Gain On Shares

I understand that you can include costs involved with selling shares but i wanted to clear up which costs are allowable. Are any of the following allowable as costs? 1. Foreign Exchange Fee charged when the share dealing service account I use charge to convert to GBP. 2. An annual Account maintenance fee. This is charged for maintaining the account while shares are held. They take the fee out by means of deducting a proportionate amount of shares in my account to cover the fee.

Hi,

You can see the guidance below which has an exhaustive list of incidental costs of acquisition and disposal. It advises that no other expenditure is allowable.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250

Thank you.

So a further question, if shares are taken to cover the costs of maintaining the account l, I put this is in the workings as shares sold? Example. Computershare take 0.5 shares from my account to cover the annual fee to maintain the account. Do I put the 0.5 shares as shares I have sold and adjust my 104 holding accordingly?

Hi JamesMay75

That is correct.

Thank you

thank you for the information above, I have tried reading https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250 but it is still unclear on a couple of items, is a foreign exchange fee to convert my proceeds from USD to GBP from the company that holds my shares an allowable cost? is the trading fee used to charge me for the sale of shares from the company that holds my shares an allowable cost?

Hi
No.  Costs incurred in converting to pounds sterling are not allowable, but the share disposal cost is.
 

Hi, to follow this post, similarly, I have an annual account maintenance fee for my share dealing broker, for maintaining the account while shares are held. My broker takes their fee monthly from my cash balance in my share dealing account. My cash balance is a build up of the dividends I receive from offshore shares. My query: where can I insert this cost on my tax return, I cannot find anywhere to insert it? (I am guessing I cannot deduct it from the dividends I receive -and that I insert on my tax return-, as otherwise the foreign tax paid on it (which is inserted also on my tax return) wouldn't be any longer the 15% withholding foreign tax...am I correct?)

Hi,
In the tax return is a box for 'allowable costs (including purchase price)'.  You would include this cost in this box, as the sum in this box is deducted from the disposal proceeds.
Thank you.