Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Paying capital gains online on stock accumulated over time

    Thanks, but I don't think my question got across. I understand the pooling concept and how to calculate the capital gain and tax. My problem is in reporting this online. These Section 104 shares were accumulated over 6 years and 24 separate purchases. I sold all those shares in one trade. When I try to report the gain & tax to HMRC (via the online reporting service) one of the mandatory fields is 'initial purchase date'. I'm asking if I can just use the purchase date of the first purchase (and report the sale in one go), or if I have to pretend the single sale was actual 24 sales and split it into 24 separate reports?
  • Paying capital gains online on stock accumulated over time

    I'm trying to report a capital gain from a sale of stock (all from the same company). This stock was obtained in small amounts (24 separate events) over a 6 year period. While these were purchase separately, I sold them in one go. The website (https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax) appears to want me to report this as 24 different sales (even though it was only one) and make 24 separate payments to HMRC. Is it OK to enter my sale into the web form as a single event (and obviously including full details of the 24 events in the 'show your working' upload) and make one payment? If so, should I use the first purchase date as for the initial purchase date (it wouldn't let me enter 'various')? Additional Context: Paying the UK tax now (rather than waiting leaving it until the yearly self-assessment submission) simplifies my foreign taxes.
  • Transfer of Residency relief (TOR) for personal items that come with me on the plane

    I'm planning to move back to the UK in 2022 after 18 years abroad. I've read up on Transfer of Residency Relief, and can see how to comply for all my regular household coming back by sea. However, I'm unclear what I should do about some higher-value / can't-live-without items I plan to bring back with me on the plane. Specifically my personal laptop (estimated value: £2,500, 7 months old at planned date of travel) and accessories. Can I get relief on items I bring with me on the plane? If so, do I include them on the same ToR1 as my sea shipment or do I need to do a separate application?
  • RE: Calculating average cost basis for shares purchased and sold while non-resident

    Sorry to be dense, but I don't know if the answer above means calendar year or tax year when it just says year. I've asked other people, and they're evenly split between calendar, tax, and don't know :-)
  • RE: Calculating average cost basis for shares purchased and sold while non-resident

    Thanks. I definitely have the information to do that. Last question: I'll be arriving in the UK shortly before the start of the 2022-23 tax year. My reading of the Statutory Residence Test (SRT) has me being non-resident for all of tax year 2021-22 (and the 18 tax years before that). Does the phrase 'arriving in the UK' in the response above mean 'when you get off the plane' or 'when you become UK tax resident'? (I have the information to calculate cost basis for either scenario)
  • RE: Calculating average cost basis for shares purchased and sold while non-resident

    Thanks. While many of those links (and the pages they link to) discuss the identification of shares, all assume at least the quantity and sell price are known. I only know these for around 150 purchases. Out of how many, I don't know. If you are wondering how this is possible, in my 18 years working in the US, my employer issued me shares 4 time a year through an ESPP plan, and 2 to 6 times a year through bonuses and awards. Add to that a dividend repurchase programs (which converted dividend payments into new stock purchases), and I literally have hundreds of separate purchases of the same stock. In the US, stocks can be sold by 'Specific Identification Method'. This allows you to pick the specific shares to be sold, rather than First-In-First-Out or the UK's section-104 averaging. This gives the seller better control of when they incur capital gains and losses. Once the US tax relevance of the sale are over, this information does not need to be retained. My current broker offers 10 years of records, but my sales would have mostly been from other brokerages, at which my accounts are now closed (my employer liked to shop around for the best deals, and as such went through several brokers while I was with them). As a result, I only have information for purchases that represent shares not yet sold or gifted away. To correctly calculate the UK average cost basis, I would need to know about the lots I completely purchased and sold while in the US. Had I known in 2003 information for shares in US companies bought and sold in the US would be needed for a move to the UK in 2022, I would have taken measures to have obtained and retained the information. But I didn't know I'd be moving to the UK in 2022, or that this information would be necessary for compliance. Can you help me do the right thing here? I suspect many in this position would just keep quiet about the trades, but that's not me.
  • Calculating average cost basis for shares purchased and sold while non-resident

    When calculating average UK cost basis for stock, should I include shares that were both purchased AND SOLD while not UK resident? If I should include these shares, what should I do if I don't know their quantity and cost basis? (US brokers only permanently track cost basis of items not sold yet. I don't have purchase records for shares sold 18+ years ago) I've read https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax, and looked at every hit on .gov.uk for 'section 104', and can't find any guidance on this, so any help would be appreciated.
  • Does the UK Bed & Breakfast 30 days rule apply to non-UK residents?

    The UK's 'Bed & Breakfast' 30 day rule means that sale of a stock followed by repurchase within 30 days effectively negates the change to the cost basis. What I can't tell is whether this rule only applies to UK residents. e.g. if a non-UK resident bought US domiciled stock in 2020, sold in 2021, repurchased the following day, and become UK tax-resident in 2022, would they use the 2020 cost basis or the 2021 cost basis for UK tax purposes going forward?
  • RE: Calculating UK capital gains on sales of US situated and domiciled stocks

    Thanks, but that was a very generic link (it points to documentation I'd already read before asking the question) and I wasn't able to use it to answer my question. Perhaps if I rephrase the question: Are capital gains taxes calculated on the sale of a foreign stock held abroad by a UK resident calculated using the foreign capital gain (after allowing for the relevant currency conversions), or on what the capital gain would have been if the stock was held in the UK? [Because the UK and US have different methods of calculating cost basis, the capital gain numbers would be different]
  • Calculating UK capital gains on sales of US situated and domiciled stocks

    As I understand it, UK capital gains (for a UK resident) on foreign assets held abroad is calculated as: ​ Sale price (converted to GBP at time of sale) minus Purchase price (converted to GBP at time of purchase). Does this change if the foreign asset is a US stock? I ask because I see the US and UK have different ways of calculating the cost basis of shares.