Not sure whether I have picked the right board, but here goes!
I buy 1000 shares in company A on 1/1/2010 for £4000
By 2/2/2012 they have risen in value so my holding is now worth £5000, so I decide to sell 200 shares so that my holding now has the value of £4000 again.
What should I enter for book cost?
The reason for asking is that I have moved my shares to a different broker and the new broker has the option to enter book cost.
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Book cost
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Direct questions and answers, this room is not for general discussion please
Direct questions and answers, this room is not for general discussion please
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- 2 Lemon pips
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- The full Lemon
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Re: Book cost
It does not matter what the shares are now worth, You have sold 200 shares out of an original holding of 1000, that is 200/1000 = 1/5 so the book cost for the remaining 800 shares is 4/5 of £4000 which is £3200. That, subject to an adjustment for buying and selling costs, is how a CGT calculation is done.
Dod
Dod
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Re: Book cost
Thanks for that.
Another scenario:
I buy 1000 shares in company A on 1/1/2010 for £4000
I buy a further 500 shares 2 years later for £2500
What should I enter for book cost in this case?
Another scenario:
I buy 1000 shares in company A on 1/1/2010 for £4000
I buy a further 500 shares 2 years later for £2500
What should I enter for book cost in this case?
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- Lemon Slice
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Re: Book cost
granretire wrote:Thanks for that.
Another scenario:
I buy 1000 shares in company A on 1/1/2010 for £4000
I buy a further 500 shares 2 years later for £2500
What should I enter for book cost in this case?
You enter the "Section 104" pool value.
So in this case the book cost is £6500, valuing each share at 433.33p each.
You do this to make your CGT calculations easier when you come to sell. (https://www.gov.uk/government/publicati ... s-tax-2015 might help)
PochiSoldi
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- Lemon Quarter
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Re: Book cost
I assume that the example you offer is just that...only its irrelivant for CGT etc at amounts and values you suggest
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- 2 Lemon pips
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Re: Book cost
Correct mutantpoodle, it was just an example - hence the simple figures. Just needed to understand for entering data with new broker
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- Lemon Slice
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Re: Book cost
Book cost is the original investment ( £4000 ) plus stamp duty ( £20 @ 0.005% ) plus dealing cost ( e.g.£12 ) making B/C of £4032 or 403.2pper share. For Break even , add dealing cost to sell.
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