RE: At last5 Sep 2024 21:53
@Steve
Thank you.
@JG
Think of it this way. I come at it from an accounting point of view, monitoring hard cash average cost of holding an investment. As a safety buffer, I do not reduce the AC by any dividend income received. Tax side (non ISA) is dealt within SA returns using the S104 rules correctly.
Trading aim is to average cost down to below £ Zero AC and beyond.
This works for me and is relatively straightforward to monitor live with an HL portfolio watchlist at AC updated by each trade. (The HL report columns loss / profit are meaningless, the watchlist give a live up to the second valuation to make decisions.)
In your example, ignoring stamp comms for simplicity
Tranche 1 AC 78
Post tranche 2 - AC lower on watchlist = 76.833 (60k shares [50+20-10] / cash cost [46100]
Average lowered successfully - rinse repeat.
Tax gain worked out separately at end of year return. By then you should have a much lower average cost than your entry. Plenty of bites at the apple.