Calculating Capital Gain / Loss

[Chorlton]

Hello All,

Can anyone answer a quick question for me regarding Capital Gains / Losses.

If one wants to close part of a position which has been added to over a period of time how does one decide which original Buy order matched this latest Sell Order.

For example,

I purchase 1000 shares in XYZ on 1st Jan 2007 at 80p and another 1000 shares on 1st Feb 2007 at £1.00

If I then decided to sell 500 shares on 1st March 2007, is the "last in-first out" principle still used to decide which Buy order is used? In this case the Buy on 1st Feb.

Apologies in advance, but having not lived in the UK for a few years now, I can no longer remember.

I've tried to locate the specified IR rules online but have been, to date, unsuccessful so hence my post on here. If anyone knows the link to the IR which highlights this I'd be most grateful if you can post it.

Thanks in advance,

Chorlton

 

[Chorlton]

Hi All,

Just wanted to bump this thread up as I still haven't managed to find the answer yet....

Any advice welcome.......

 

[Rhody Trader]

In the US I'm pretty sure it's the FIFO rule - First In, First Out. That means by your example when you sell you first sell the 80p shares.

But the rules may be different where you are.

 

[frugi]

Capital Gains Tax - Share Identification Rules - Your Money Guide - Fool.co.uk

 

[Chorlton]

Thanks for the replies Guys.........