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Posted Sun, 23 Jan 2022 10:21:36 GMT by ELEL
Before I became a UK resident, I own a non-UK (or foreign) stock for more than 20 years and did more than 100 buy/sell transactions. When I became a UK resident, I owned, say, 1000 shares of that stock. I need to work out the pool of actual cost of the Section 104 Holding of that 1000 shares before I can calculate my CGT liability. How can I do the calculation? Should I follow the example shown in HMRC website by starting from the first share I owned (i.e. more than 20 years ago that I don’t have proof other than my won EXCEL worksheet), calculating the pool of actual cost after each buy/sell (more than 100 transactions) and then working out the pool of the actual cost of that 1000 shares when I became a UK resident? Or, can I use the cost of the latest 1000 shares I bought and treat it as the pool of actual cost of my Section 104 Holding as a start? Thank you.
Posted Mon, 24 Jan 2022 14:17:42 GMT by HMRC Admin 17

Please see guidance here regarding s104 holdings and how to work these out :

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)  and :

Capital Gains Manual    .

Thank you.
Posted Tue, 25 Jan 2022 15:37:37 GMT by ELEL
Thanks a lot for the reply. My question is in fact more on whether there is special procedure for a new UK Resident in calculating the S104 holding for those shares owned before becoming a UK resident. I read the web pages of the links in your reply and read the other related pages in the Capital Gain Manual again. I found no mentioning of whether the S104 holding calculation would be different for a new UK Resident. So, I believe that the calculation method is the same no matter you are a new or existing UK Resident. My follow up question is then: How one, as a new UK resident, can calculate the S014 holding for those shares he/she owned for more than 7 years but without the buy/sell records older than 7 years ? Thank you.
Posted Wed, 26 Jan 2022 15:34:39 GMT by HMRC Admin 20

You would need to use either a stock broker or internet search to work out share values if you have no records of these. 

Thank you.
Posted Wed, 26 Jan 2022 22:46:26 GMT by ELEL
Thanks again for your reply. It is easy to get historical stock prices from internet. However, I don’t have all the records of the dates that I bought them. I do not need to keep old trading records because the place I lived before I became a UK resident does not charge CGT on stocks trading. I checked with the bank and they can only provide the statements of the last 7 years. A lot of my current stocks holding were bought more than 7 years ago. Can you please advise how I, as a new UK resident, can calculate the cost of my S104 holding for those stocks I bought more than 7 years ago? Thank you.
Posted Thu, 27 Jan 2022 15:49:14 GMT by HMRC Admin 2

In this case you will need to try and estimate the purchase prices and then advise on your return that you have used estimates. 

Thank you.
Posted Sat, 29 Jan 2022 07:48:45 GMT by ELEL
Thanks for the suggestion. The bank can provide the statements of the last 7 years. With this, I can then have the number of shares in my S104 holding at the beginning of the previous 7th year. What I need to estimate is the cost (or purchase prices) of this S104 holding at that moment. The shares were bought and then sold a lot of times so many years ago that there is no easy or good way to do the estimation. Can I use the mid-point market price (i.e. the average of year-max and year-min) of the previous 8th year and use it as the cost of my S104 holding at the beginning of the previous 7th year? I understand that there is no best estimation method but is this method acceptable? If not, I will appreciate it if you can provide some guidelines or examples of acceptable estimation methods. Thank you.
Posted Mon, 31 Jan 2022 16:30:04 GMT by HMRC Admin 2

You already have the historical value of the shares.

What you require is to estimate the years in which the shares were purchased and not subsequently sold.

Consider what is your normal process for buying shares. If you believe the method you state gives a fair representation of the situation, you can use that basis as long as you tell us the method used.

Thank you.

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