CGT calculator notes


This calculator may assist in CGT calculations - CHECK THE FIGURES THAT YOU GET and let me know if you have problems - send an email to david@stonebanks.co.uk

From the HMRC website http://www.hmrc.gov.uk/cgt/shares/find-cost.htm

"Finding out which shares you're selling

In some cases you might buy shares of the same class, in the same company, but at different times and prices. When you come to sell or dispose of some of these shares, share identification rules are applied that match the shares you sold with the ones you bought. The rules that have to be applied are set out below.

Shares bought and sold on the same day

The first step is to match the shares sold or disposed of with shares you bought on that same day. This is the 'same day' rule. Sales made on the same day are treated as a single disposal. If you haven't bought and sold shares on the same day, you move on to the next step.

Shares acquired within 30 days after selling

The next step is to match the shares sold with shares acquired in the 30 days after the sale or disposal - taking the earliest first if there is more than one. This is the 'bed and breakfasting' rule. If you haven't bought any shares within 30 days of the sale, you then look at shares bought at any other time.

Shares bought at any other time

If the shares were acquired on any other date a different rule applies - all shares acquired before the day the shares were sold, of the same type in the same company, are pooled to create a single asset. This is called a 'Section 104 Holding'."

See ADVFN CGT thread posts 4721 and 4722 for advice on handling calculations for the 2010/2011 tax year. This will probably be amended when we see the tax return forms.

If you've got issues with the 30-day rule applying across the year ends, one way to tackle them is to make the input cover periods for both 30 days before and for 30 days after the end of the tax year, then remove any gains and losses in the calculator output that are outside of the tax year that you are interested in. From post #4794 by Gengulphus on ADVFN CGT thread.

The program reports gain or loss for each sale and for all sales listed.

HMRC Capital gains summary notes

HMRC Shares and Capital Gains Tax helpsheets

HMRC Employee share and security schemes and Capital Gains Tax helpsheets

Another site that provides a CGT calculator and advice on CGT is href="http://www.cgtcalculator.com/algorithm.aspx

I have provided translation programs - from www.stonebanks.co.uk - so that results from the two programs can be easily compared.

Format for source data:

Source file is a text file with comma "," to separate fields:
; comments starting with a semi-colon are copied to the output text
@ comments starting with @ are NOT copied to the output text

Share name - if line starts with a letter.

Data list with comma (",") separating fields:
date dd/mm/yy or ddmmyy, b or B or s or S, qty, unit price (pence), total paid (including costs) or net received (after costs) (£.p)
They are what you pay or what you receive.

Deals for each share should be listed in date order.

Clicking the diag info box will display all calculations so that you can check the maths.

The program should cope with up to 50 deals for any one security.

Comments welcome to stonebanks@ntlworld.com

abc co ord
01-02-02, b, 1000, 25, 260.55
01/03/02, b, 2000, 20, 420
01/04/03, b, 500, 50, 260.23
02-05-03, b, 100, 60, 59
020503, s, 1000, 60, 590.35
03-06-03, s, 1000, 70, 680.45

Discovery tst ord
; bt as warrants 6/4/00 at 101p
; exercised 30/4/02 (converted to shares) at 100p
06-04-00, b, 1500, 201, 3037.73
06-12-02, s, 1500, 91.2, 1353.00

Ottakar's ord - Hemscott tip
250702, b, 1500, 165, 2512.13
13-11-02, s, 1500, 170, 2524.50

Ensure that there are NO blank lines within the list of deals for a company and that there IS a blank line before the next company share deals.

Enter your data into a word processor (I used WordPad) then Edit>Select All>Copy and paste into the upper text area of this calculator page.

Click on Process - the middle text area then displays the data in the format required for the Inland Revenue CGT form. Right click on this text area - use copy and paste to your word processor.

I have simply copied the totals to the revenue CGT form and sent a copy of the calculations with my tax return. It has been accepted without question for several years. Alternatively, http://convert.neevia.com/ or http://www.dopdf.com are websites that can be used to convert the calcs to PDF if you wish to post your tax return online.

The last text box shows a list of companies and closing pool figures. At the end of a tax year, this can be copied to form the start of a data list for the next tax year.

If you end your data list at the end of 5 April, then the content of the bottom box forms the starter for the following year. I have several files - cg0708.txt, cg0809.txt, cg0910.txt, and next years will be cg1011.txt.

Please save a copy of the 5 April file somewhere (I use floppy disks) in case your machine crashes - as mine did recently!

You ought to save another copy at 5 May so that you can amend the 5 April list for any buys within 30 days of an earlier sell - but I've never done that! The tax return is difficult enough without looking for trouble!