Pomhk

How does it work with sale of non UK shares when an average value is used for the acquisition cost of shares acquired over different dates, as far as the exchange rate for conversion back to sterling is concerned? What date of acquisition should be assumed when there is a partial disposal over the total holding? Please clarify this point as the question seems to have been asked by a few users already but no clear answer has been provided. Example: I own 1,000 shares in A Inc (US company) with 600 shares acquired in 2015, 300 shares acquired in 2017 and the remaining 100 shares acquired over a number of different dates between 2015 and 2024 due to dividend reinvestment. I sold 700 shares in 2023-2024. If I were to use the s104 pooling method to calculate the average cost base for my disposal, what date of acquisition should I assume for the purpose of converting the cost base from USD back to GBP?

Hello, following on from the question above. Based on the section 104 method of calculating the cost base of multiple acquisitions, it would appear that one should use the average cost of the shares purchased. Do we need to convert the gain as computed in the foreign currency back to sterling based on the prevailing exchange rate on the date of disposal or do we convert each component of the calculation separately, i.e. the proceeds converted based on exchange rate on the date of disposal and acquisition costs are converted based on exchange rate on the various dates of acquisition, bearing in mind that the shares disposed of were acquired on multiple dates, in which case are we applying a FIFO method in identifying the shares being disposed of?

I sold some US shares in January 2024 and these shares were acquired in 2015. I became UK tax resident in September 2021. Should the acquisition cost of the shares be based on the the MV of the shares on the date I became UK resident as opposed to the original date of acquisition of those shares?