Book cost

[granretire]

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.

[Dod101]

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

[granretire]

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?

[pochisoldi]

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

[mutantpoodle]

I assume that the example you offer is just that...only its irrelivant for CGT etc at amounts and values you suggest

[granretire]

Correct mutantpoodle, it was just an example - hence the simple figures. Just needed to understand for entering data with new broker

[marronier]

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.