Inquiry on CGT Acquisition Cost for Shares Sold by a Split-Year Resident

I hope this message finds you well. I am reaching out for guidance regarding the Capital Gains Tax (CGT) implications for shares sold during my split-year residency period. To provide some context, I have been a non-UK resident from April 2023 until July 2023 and subsequently became a UK resident from July 2023 to April 2024. I have reviewed the criteria and understand that I am eligible for split-year treatment for the tax year 2023/24. The shares in question were originally purchased in 2000 at a price of $1 per share. By July 2023, when I became a UK tax resident, the value of these shares had increased to $50 each. I sold these shares on the 1st of April 2024, when their value reached $100 per share. My question pertains to the calculation of the ACQUISITION COST for CGT purposes given my residency status during the 2023/24 tax year. Specifically, should the CGT be calculated based on the entire growth from $1 to $100, reflecting the period of my overseas and UK residency? OR is the calculation based solely on the value increase from $50 to $100, corresponding to the period of my UK residency post-July 2023? I would greatly appreciate your guidance on how to accurately determine the acquisition cost for CGT purposes in this scenario. Understanding the correct basis for CGT calculation is crucial for my tax compliance. Thank you for your time and assistance. I look forward to your expert advice.

Hi,

The calculation is based on the entire growth from date of purchase to date sold.

Thank you.