does cost of shares include dividend reinvestment amount

I sell a stock which I bought the stock with both initial lump sum and stock’s dividend reinvestment. Initial lump sum investment on 1-May-2020: GBP 10000 to buy 100 shares Dividend reinvestment on 1-Aug-2020: GBP 1000 to buy 10 shares Dividend reinvestment on 1-Nov-2020: GBP 1000 to buy 10 shares Dividend reinvestment on 1-Feb-2021: GBP 1000 to buy 10 shares Total I have 130 shares now. I sell the 130 stock shares and get GBP 20000. I would like to know what the cost of shares in tax reporting. Should the cost of shares include the re-invested dividend plus initial lump sum amount, that is GBP 13000? Or the cost of shares only calculate the lump sum only without reinvested dividend, that is GBP 10000?

Hi samuelkfp2000,
It is the cost without the reinvested amount.
Thank you. 

 

Shouldn't the dividends, even though reinvested, been subject to Dividend tax in the previous years?

Hi,

Only if they have been re-invested by you. If they have been automatically re-invested by the company, then, no.

Thank you.

Back to my example, if the cost of shares is amount without the reinvested amount, that is GBP 10,000, should I report dividends income in tax reporting for receiving the below dividend in 2020 and 2021? Dividend reinvestment on 1-Aug-2020: GBP 1000 to buy 10 shares Dividend reinvestment on 1-Nov-2020: GBP 1000 to buy 10 shares Dividend reinvestment on 1-Feb-2021: GBP 1000 to buy 10 shares

Hi
We cannot comment on any form of calculation/example or scenario, whether fact or fiction.  

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If the dividend is automatically reinvested to buy shares, should the dividend being reported as dividends income of the year?

Hi,
The answer to your question is no it doesn't.
Thankyou