CGT position for additional permitted subscriptions (ISA)
arongunningham
Member
The usual way to determine CGT for an investment, when there are multiple purchases, is:
Andrew acquired shares in XYZ Ltd as follows:
3,000 shares in March 2005 for £8,000
2,000 shares in April 2007 for £5,000
5,000 shares in May 2009 for £17,000
In total, Andrew has acquired 10,000 shares at a cost of £30,000.
In July 2017, Andrew sells 4,000 shares for £20,000. Assuming he makes no other purchases in XYZ Ltd on the same day as the disposal, or within the next 30 days, the gain will be:
£20,000 - (4,000/10,000 x £30,000) = £20,000 - £12,000 = £8,000.
Does anyone know if there's any difference if one of those acquisitions was inheriting a spouse's ISA (in between opening the additional allowance it is transferred to an OEIC in-specie)?
The spouse died before 6 April 2018 and therefore this isn't under the new 'continuing isa' regime.
Thanks!
Comments
If inheriting the holding then the book cost for those units / shares is the probate value; not clear from your post if you have that so sorry if 'teaching you to suck eggs'!! Other than that process looks good to me.
yeah so we have date of death cost prices, it was whether or not there's any special 'no cgt applicable' rules, i dont think there is.
It's a bit unfair that you have to pay for growth, but i guess that's why they're changing the rules and it will never leave ISA wrapper.
Thanks!