Capital Gains on old investment

D

Dinjoe

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I inherited a small amount of shares in an Irish registered company in 1999 and over the years have opted to have the dividend reinvested to purchase more shares. Just wondering now if I wanted to sell some or all of the shares what reference date should I use for the purpose of cgt. Do I have to account for the value of every share price at the time I received each dividend and work out cgt/inflation multiplier separately on each 'acquisition'.
 
Unfortunately yes. Any date after the CGT multiplier ended won't be as important so that'll reduce the workload. Most company websites report the historical dividend amounts/dates in their investor relations section.
 
If you're selling your entire holding it should be relatively simple if you know what the dividend amounts were, because you just use those amounts, index them as appropriate, and that's your base cost.

If you're not selling the entire holding you may crank up MS excel and bring your thermos... ;)
 
As an afterthought: have you been declaring the income of the dividends each year? While you would not have 'received' the dividends (they were used to buy more shares for you), it is still an income for tax purposes. The dividend withholding tax at 20% may not have been your full income tax liability each time.
 
rob oyle said:
Unfortunately yes. Any date after the CGT multiplier ended won't be as important so that'll reduce the workload. Most company websites report the historical dividend amounts/dates in their investor relations section.
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I recently had a similar situation. It was difficult as of course some of the certs were missing. I eventually got an accountant to deal with it and it was not expensive they have everything to hand re purchase rates. good luck if you would like the accountants details please contact me privately. Browtal
 
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