Another CGT question - unknown base cost

[williaa68]

While living in Austrralia in about 1999 I bought some ANZ shares. I gifted these to my wife before we moved back to the UK (from Singapore) in 2006. We have been reinvesting the dividends since then and the shares are now worth around AUD100k, or £50k. I would like to sell them.

The problem is I have lost the contract note for the original purchase. I have asked the broker but it is so long ago they don't have it. Am I right in thinking that my wife's base cost is my acquisition price? I have most of thr details of the DRP since I transferred the shares to her.

Two questions, please:

(1) does our time out of the country make any difference to th calculation? I am non-Dom, my wife is UK domiciled, we are both UK resident
(2) what do I do if I can't find the base cost? I appreciate I can take the base cost as zero but I would rather not!

Thanks in advance for the help

[LeoSayer]

Try the registrar for ANZ, they may be able to give you a complete transaction history for the account that your shares are registered in.

[Alpinestars]

Your wife's base cost will be your original cost plus the dividends you or her reinvested.

She is subject to CGT on an arising basis by virtue of her current residence and domicile status. She'll be able to offset her annual allowance against any gain.

You should also have an annual allowance so she could gift some shares back to you so that you get 2 lots of AE.
Remittance basis of gains is likely to cost you too much so I've ignored it.

[Claudia Skies]

LeoSayer said:

Try the registrar for ANZ, they may be able to give you a complete transaction history for the account that your shares are registered in.

Yes, that's absolutely the right place to start.

They should be able to tell you,

• Your shareholding histories
• The company's dividend history

and from these you can reconstruct the whole picture for your tax return.

[williaa68]

Thank you. If Computershare can tell me the date I first purchased the shares, it is reasonable to just take the average traded price on that date as my base price?

[Claudia Skies]

williaa68 said:

Thank you. If Computershare can tell me the date I first purchased the shares, it is reasonable to just take the average traded price on that date as my base price?

You should really do a small table showing each of the "dividend reinvestments" with the appropriate price paid for the shares, and add it all up.

As well as considering splitting your gain with your wife you might think about selling the shares across different tax years. Depending how the figures work you may find you can engineer a situation where there is nothing to report to HMRC at all. In other words all gains under £11k each per year and all proceeds of sale under £44k each per year. Sounds attractive.

Edited by Claudia Skies on Saturday 21st February 17:53

[williaa68]

The reinvested dividends I can do no problem - it is the base cost of the original shares I struggle with. Splitting is a good idea - my wife has other gains but not much income, I have income but no other gains!

[Alpinestars]

Claudia Skies said:

You should really do a small table showing each of the "dividend reinvestments" with the appropriate price paid for the shares, and add it all up.

As well as considering splitting your gain with your wife you might think about selling the shares across different tax years. Depending how the figures work you may find you can engineer a situation where there is nothing to report to HMRC at all. In other words all gains under £11k each per year and all proceeds of sale under £44k each per year. Sounds attractive.

Edited by Claudia Skies on Saturday 21st February 17:53

HMRC generally accept the closing price on the day.

[Claudia Skies]

Alpinestars said:

HMRC generally accept the closing price on the day.

Yes, I agree.

The point I was making I that it needs to be the right day for each purchase when there has been a series of purchases.

[Alpinestars]

Claudia Skies said:

Yes, I agree.

The point I was making I that it needs to be the right day for each purchase when there has been a series of purchases.

Apologies, I meant to quote the OP.