CGT on Shares

B

Blarney

Registered User
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Hi all,
I have read the key post above but just need clarity on this please
Purchase as follows
1000 shares in company A for €1 each, then a few weeks later buy
500 shares in company B for €2 each and later buy
600 shares in Company B for €2.50

The I go to sell 860 shares in Company B @ €3 each

Is the base cost for CGT the €2 at which I purchased shares in company B or the €1 in company A as effectively they are all grouped together as it doesn't matter what company they were bought in.

Thanks
Blarney
 
Blarney said:
The I go to sell 860 shares in Company B @ €3 each

Is the base cost for CGT the €2 at which I purchased shares in company B or the €1 in company A
Click to expand...
Why on earth would the cost of shares in company A be relevant at all since you're selling only shares in company B?

By selling 860 shares in company B for €3 each you're selling the 500 acquired for €2 and 360 of the 600 acquired for €2.50 (the CGT "FIFO" rule) so your capital gain is

Code: 
(500 x €1) + (360 x €0.50) = €680

You should read the key posts and this again:

Selling or disposing of shares

This page is an explanation of the special rules that apply to CGT on shares
www.revenue.ie www.revenue.ie
 
Last edited:
Blarney said:
Hi all,
I have read the key post above but just need clarity on this please
Purchase as follows
1000 shares in company A for €1 each, then a few weeks later buy
500 shares in company B for €2 each and later buy
600 shares in Company B for €2.50

The I go to sell 860 shares in Company B @ €3 each

Is the base cost for CGT the €2 at which I purchased shares in company B or the €1 in company A as effectively they are all grouped together as it doesn't matter what company they were bought in.

Thanks
Blarney
Click to expand...
unless you sold A, then the base price of A or any other asset you may hold doesnt matter to sale and CGT of B.
 
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