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Posted Thu, 09 Mar 2023 16:10:52 GMT by
As a UK resident, I have recently made some investments in "funds" with an investment platform/broker. As a new investor I have not had anything to do with CGT matters before but was wanting to know if I sell in the future and have a capital "gain" - are all costs and expenses in connection with buying/selling/holding the funds allowable against any gains made? I have read that dealing costs/expenses are (I don't have individual shares so don't pay stamp duty etc.) but does this also include a calculated proportion of the broker monthly flat fees (such as £10/month) or annual percentage fees (such as 0.45% per year on all holdings) as applicable per the broker account, for holding those funds. If so, how is it calculated - just by apportioning the percentage the "sold" funds make up of the total, for the amount of time they were held and calculating the percentage? Also if not, why would that be the case when these are just costs/expenses/fees/charges or whatever you want to call them of having the funds? Just wondered if someone could clarify for me please.
Posted Mon, 13 Mar 2023 15:03:12 GMT by HMRC Admin 32
Hi,

A Capital Gain would occur where the disposal value is greater than the purchase value, plus costs (buying and selling). Where the overall gain for the year exceeds the annual exempt allowance, the balance is subject to Capital Gains Tax at the lower (10%) or higher rate (20%) or a combination of both.  

Guidance on tax when you sell shares can be found at:

Tax when you sell shares

You can also find a calculator to work out your gain.

Tax when you sell shares: Work out your gain

Thank you.
Posted Wed, 22 Nov 2023 13:41:46 GMT by
Hi, I have a similar query: I am doing self assessment online. I have put my broker charges in as allowable costs. I worked out that if I deduct my broker fees from my gains, I will not be liable for CGT, I am under allowance. However the calculation in "View Your Calculation" doesn't seem to be deducting the allowable costs from my gains. Am I doing it right? Thank you
Posted Fri, 24 Nov 2023 08:34:40 GMT by HMRC Admin 25
Hi Nick W,
When completing the tax return, you need to show the disposal proceeds before any deductions.
You then claim the cost of buying the assets and the broker fees as allowable costs.
If you have not entered a figure here this is why you have a higher gain.
Thank you. 
Posted Fri, 24 Nov 2023 15:03:03 GMT by
Hi, thanks for the reply. In Disposed chargeable assets I only have listed shares. I filled in Disposal proceeds,allowable costs, gains in the year, losses in the year. In losses in the year I did not include allowable costs, it's purely from losses when disposing of listed shares. If allowable costs should be making the amount of gain smaller this doesn't seem to be happening, as above, if my allowable costs were reducing my gains, I'd be below the £12300 threshold. But currently it says I am above this.
Posted Tue, 28 Nov 2023 10:47:19 GMT by HMRC Admin 5
Hi Nick W

Where the disposal value of the shares is less than the acquisition costs plus brokers fees etc (for acquiring and disposing of the shares) a loss arises.  

The cumulative losses would be shown, so that they can be set against the gains, before the annual exempt allowance is applied.

Thank you
Posted Tue, 28 Nov 2023 13:50:00 GMT by
I'm sorry, I don't understand. I have losses anyway, from listed share disposals, and I have gains. The website summary is only showing losses from those listed share disposals. It is not adding allowable costs to my losses. Do I add allowable costs to losses in the year?
Posted Thu, 30 Nov 2023 12:35:18 GMT by HMRC Admin 10
Hi
When completing the capital gain section you need to show your disposal proceeds and any costs, this includes purchase price, in order to arrive at a gain/loss figure.
Posted Thu, 30 Nov 2023 12:54:20 GMT by
Ok thanks but maybe we are talking cross purposes. I've done that. Costs of fees are not being deducted by the site. I'll restate my question simply, as I don't know the correct terminology: Where do I put broker fees in my self assessment?
Posted Fri, 01 Dec 2023 10:35:45 GMT by HMRC Admin 20
Hi Nick W,
On SA106, you declare the disposal value and the allowable costs, which result in a gain / loss of the shares.
The allowable costs are made up of brokers fees in acquiring and disposing of shares, as well as the cost of purchasing the shares.
Thank you.

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