How to calculate CGT with different share numbers in bed and breakfast and section 104

Hello, with published HMRC examples, it is clear that shares disposed are matched with shares purchased within 30 days and the remaining "new, unmatched" excess shares are entered into the section 104 holding with apportioned cost added into the pooled cost. However, how does this work when the the number of shares purchased after previous disposal is a lower number? To illustrate my example, how would you calculate CGT and work out what number of shares goes into section 104 when you have multiple transactions within 30 days; 40 shares Company X purchased 1st Sept 2023 for £80 40 Shares Company X sold 12th Sept 2023 for £120 25 shares Company X purchased 1st October 2023 for £100 25 Shares Company X sold 15th October 2023 for £150 How does the section 104 holding and CGT work here where the second purchase of 25 shares is lower in share number of the 40 shares dispatched on 12th sept? What happens when further shares are purchased either within or after 30 days of the previous disposal? Many thanks David

Hi,

You can see an example here:

HS284 Example 3 2023

Thank you.

Hello, this example illustrates new purchases and then selling a fraction of total shares with adjustment of the section 104 holding. However, it does not answer my question which is in the thread above in that - How does the section 104 holding and CGT work here where the second purchase of 25 shares is lower in share number of the 40 shares dispatched on 12th sept? how do you work out the CGT for the 40 shares sold? Is it based on that proceeds for 40 shares effectively means 15 shares proceeds is £120 (as the other 25 shares are matched with the subsequent 25 shares purchased 1st October. Please show how this calculation with the example i gave in this thread wgeb trhere are individually two separate disposals. Also, what happens if there is a third purchase (again within 30 days) of second disposal on the entire calculation. I mean - if you know that there are three purchases following disposals within the preceding 30 days, then when calculation CGT do you put all separate share purcahses into section 104 and then work out fractional costs linked with each actual disposal proceeds to wotk out each CGT gain (or loss) and then summate all these figures within the same tax year? thanks

Hi David James

A S104 pool is simply the amount of qualifying expenditure that relates to the number of shares in the holding.  
In a S105 holding, the cost of acquiring the first batch of shares is added to the cost of acquiring the second batch.  
This means the the acquisition value of the S104 holding is the combmined acquisition costs.

Thank you

Hello, please would you show how the CGT for the first disposal would be calculated based on your answers so that i can correctly understand the steps in the calculation. I have put the original figures in the example as below. Thank you. However, how does this work when the the number of shares purchased after previous disposal is a lower number? To illustrate my example, how would you calculate CGT and work out what number of shares goes into section 104 when you have multiple transactions within 30 days; 40 shares Company X purchased 1st Sept 2023 for £80 40 Shares Company X sold 12th Sept 2023 for £120 25 shares Company X purchased 1st October 2023 for £100 25 Shares Company X sold 15th October 2023 for £150 How does the section 104 holding and CGT work here where the second purchase of 25 shares is lower in share number of the 40 shares dispatched on 12th sept? What happens when further shares are purchased either within or after 30 days of the previous disposal?

Hi David James,
Please refer to Shares and Capital Gains Tax (Self Assessment helpsheet HS284)/hs284-shares-and-capital-gains-tax-2023 and https://assets.publishing.service.gov.uk/media/641c4712ba5ac9000cb1a72d/HS284_Example_3_2023.pdf.
Thank you.