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RNS regarding the PB placing suggests that the shares will hit the market around the 14th April
My question is this...
Does my purchase (the value of which is still unknown) class as this financial year?? ... Very important point that many will not have taken into account when calculating CGT
surely the CGT takes effect on the date of disposal not purchase..?
Morning,
Have received an e Mail from PB saying got 75% of applied for.lATB
Yes, but the purchase of the share offsets other profit does it not? Or at least that was how I understood it.
i.e If i've bought 400k of shares this tax year and I've sold shares to the value of 420k... then I'm liable to around 8k that is subject to CGT ... however my point is that if the purchase of placing shares through primary bid is classed as a purchase of shares this year, then that increases my purchase outgoings by £8k (my allocation) meaning I won't pay CGT.
Jp, I do not think it works like that.
If it did we would all purchase shares to offset gains.
CGT is only calculated on the realisation of a profit or loss which is crystallised on sale.
If you buy 1000 shares at £1 on 1st April and they are worth £2 on 5th April but you haven't sold - that isn't a taxable gain, similarly, if they were only worth 50p, that isn't a taxable loss - the gain or loss happens when you sell them and the date of sale dictates when you have to declare to HMRC.
The scenario you are talking about suggests that if you buy shares for £100K and sell them for £400K, you don't have a CGT liability if you've then reinvested that £400K in other share purchases which is wrong, you've made £300K and you pay tax on it.
lol @jpp8788 I can’t believe you don’t understand CGT and got it so very wrong, crikey
My apologies,it's my first year of making a profit to the point whereby I've had to declare
Thanks for explaining, and Dan, thanks for being so understanding.. not.
I've spent a longggg time today getting to grips with it but I understand it now .