Tax Rules?27 Dec 2017 21:38
Hello would anybody be able to answer a few questions with regards to taxing of shares bought and sold withing a same day/30day period
Example A
Day 1: Stock A BUY 1000 @ 10p =£100
Day 1: Stock A Sell 1000 @ 12p =£120
Day 1: Stock A BUY 1000 @ 10p =£100
Day 1: Stock A BUY 1000 @ 13p =£130
To work out CGT do you add the total shares acquired then subtract from the total shares disposed. (£100+100)-(£120+130) and so CGT liability would be £50 profit lesser expenses.
Example 2
Day 1: Stock B BUY 1000 @ 11p =£110
Day 1: Stock B Sell 1000 @ 7p =£70
Day 1: Stock B BUY 1000 @ 10p =£100
Day 1: Stock B BUY 1000 @ 8p =£80
this example shows a loss (£110 + £100) - (£70 + £80)= £60 Loss
Can this loss made on Stock B be offset against the profit made from stock A? Or are you un-able to offset a loss due to the same day/ 30 day rule, and will still pay CGT on the profit made?
If the above is correct how does buying the same stocks on different days but within a 30 day period have different rules that hte above?
Thanks in advance