Cash payment - £2921.64
Can I ask if your dates are correct please. You say you bought the Vodafone shares on 26 March 2013 but sold shares in Verizon on 24 February 2013, ie before the date of acquisition of the Vodafone shares.
You should refer to the "Jane" example under the heading "Tax Questions for UK and Irish Shareholders" here which mirrors your situation.Your Vodafone shares cost £18,082. Based on the values of the Vodafone and shareholdings on 24 February (see here for tax effective dates) which were £13,221 and £7,435 respectively and the fact that you took the cash as a dividend, your revised cost for the total holding is £26,237 (£18,082 + £7,435). The cost is split in proportion to the values of each holding so that your Vodafone shares now have a cost for CGT purposes of £16,794 and the Verizon shares had a cost of £9,443.You sold the Verizon shares for £7,400 so you made a capital loss of £2,043 but you received a cash dividend of £2,922 which effectively makes up the difference.I hope this helps but let me know if you have any further questions.
I have to go out for a while but will be back a little later to answer any follow up questions you may have.
Yes sorry, I should have said the sale was 24/02/14 for the Verizon shares.
I'd just like time to look at this answer tomorrow before I decide if I need any further clarification. I hope this is okay . Thank you so far!
I think there is a slight error in the calculations. The base cost should be £25, 517 (18,082 +7435) -I think you typed in 18,802.
This then provides a cost of Verizon shares of £9184, with a loss of £2184, and cost of Vodafone shares of £16332. If I sold the Vodafone shares today for 229p, I think this would then mean a loss of £16,332-£12,490 = £3842.
Could you please confirm that my calculations are correct.
Are you confirming that my calculations are correct?
No, not all of it.The cost of the Vodafone shares is £16,332 and the cost of the Verizon shares was £9,184. They are your figures and are based on an original cost for the Vodafone shares of £18,082. Your question said the cost was £18,802 which was why I used that figure in my initial calculations.The loss on Verizon is £1,784 (£7,400 - £9,184), not £2,184 as you typed.The potential loss on Vodafone is as you typed it, £3,842 (£12,490 - £16,332).
Apologies for confusion. I agree with your calculations