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Posted Wed, 04 Jan 2023 14:59:35 GMT by sultana
Hello, Can I check if I've correctly understood HMRC guidance on calculating CGT on share sales? I've recently sold all my shareholding in for £5,000. I initially bought them 10 years ago for £2,000 and during that time participated in the company's dividend reinvestment plan (DRIP), acquiring additional shares worth a total of £1,500. Assuming no other CGT gains (or losses carried forward): Sale of shares = £5,000 Acquisition cost = £2,000 (initial purchase) + £1,500 (DRIP) = £3,500 Capital gain = £5,000 - 3,500 = £1,500 As this is within the CGT allowance of £12,300, I won't need to enter the above for CGT reporting in SA100. Is this correct? Thank you.
Posted Wed, 11 Jan 2023 08:36:15 GMT by HMRC Admin 19

Yes, that is correct.

Thank you.
Posted Wed, 11 Jan 2023 09:44:44 GMT by sultana
Thank you. Please can you tell me how I inform HMRC if, instead, I make a CGT loss on the sale of shares that I wish to carry forward for 2023/24? For example, do I simply keep a personal record of the loss/es or is there a section in SA100 to make a note of this for tax year 2022/23 so that it can be carried forward to 2023/24?
Posted Fri, 13 Jan 2023 14:13:13 GMT by HMRC Admin 32

You either write to HMRC with a breakdown of the losses and ask they are carried forward or you declare the losses on your Self Assessment Tax Return.

Thank you.

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