CGT on shares (formula)

Beachband

Wondering if the formula below is the correct way for working out (CGT) Capital Gains Tax? The figures below are fictional for example purposes, using shares bought on the UK market and which are exempt of the UK 0.5% stamp duty.

Example:

* 1000 Shares purchased at £1 Sterling (currently €1.19 euro)
Cost = £1000 Sterling (€1197 euro)
* 1000 Shares sold at £5 Sterling (€5.98 euro)
= £5000 Sterling (€5985 euro)
* Commission of €150 for original purchase of shares.
* Commission of €200 for sale of shares.


Formula below in euro currency:

* Shares sale price = €5985
* Minus original purchase price = €1197
* Minus Commission for purchase = €150
* Minus commission for sale = €200
* Minus Tax Free Allowance of €1270

* Amount after deductions from €5985 = €3168
* CGT at 25% of €3168
* CGT = €792 tax
* Profit after CGT = €2376 + Tax Free Allowance of €1270 = €3646

* Total = €5193 (Which includes the profit after CGT = €2376 + Tax Free Allowance of €1270, added to the original €1197 purchase price + commission for purchase of €150 + commission for sale of €200)

Is the above correct and is it the correct way of working out CGT and the profit?

Cute Hoor

Your profit figure is correct.

€5,985 - (€1,197+€150+€200+€792) = €3,646

poodles

I would suggest that people write to their TD's asking for an increase in the amount of TFA (€1,270) or an introduction of a similar scheme that they have in the UK - an ISA

http://en.wikipedia.org/wiki/Individual_Savings_Account

Beachband

Nice one for that, just making sure that is the way to make it out, have used a few share calculators that are available, but it's easier and probably better to be able to work it out oneself, rather than relying on a share calculator.