matching rules for shares- personal tax

meibaker

hi, i am struggling to understand the matching rules for shares. please help! thank you!
1, firstly, any shares bought on same day that the disposal occurs are matched with that disposal
2, secondly, any shares bought in the 30 days after the dispoal are matched with those disposed of, matching the earliest first if more than one acquisition. this probably seems illogical, selling sth before its bought!
3, any remaining shares not yet matched are deemed to have come from the FA 1985 pool of shares, this is a device for merging shares.

dalmatian

I'm struggling with this too .and my exam is on Saturday. Help!

Bertie

Ok - with this original thread being circa seven years old you'll need to elaborate further on the question, and I'll see if I can help.

dalmatian

I don't have any question in particular - It's basically the rules which are unclear - any tips welcome of how to tackle these type of questions. I don't think I have mastered any of the ones I have done.

Bertie

I'm still not sure of the question to be honest.

The rules are as above.

1) Same day
2) Within 30 days
3) From the pool

I can't remember how deep the question goes for AAT, you'll likely need to perform the calculation without adding too much theory.

The idea behind the 30 day rule is to combat against bed and breakfasting - selling today to buy back tomorrow for a gain / loss.

Remember it is the same class of share in the same company.

dalmatian

This is it, the 30 day rule. What do I do? Subtract the sold/acquired from the 2 dates and then average the cost? I have seen it done separately and am confused.

MarieNoelle

Matching shares means that the CGT base cost of the shares sold is the actual amount paid for the shares bought in the 30 day period after the sale.