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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My stockbroker made a mistake and sold all of a holding. Can

Customer Question

My stockbroker made a mistake and sold all of a holding. Can they reverse the transaction as it was a genuine mistake? Is there a time limit for doing this?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

I've seen incorrect share transactions reversed in the past but I cannot tell you what the law is on it I'm afraid. The way I see it is that your stockbroker should buy back the shares he sold incorrectly to put you back where you intended to be. That may cost him financially if the share price has moved.

Where shares that have been sold are re-purchased within 30 days, those transactions are matched for Capital Gains Tax purposes so the CGT cost of the remaining holding should be pretty much as it would have been had the correct number of shares been sold originally.

I hope this helps but let me know if you have any further questions.
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Customer: replied 3 years ago.
Thank you.
Expert:  TonyTax replied 3 years ago.
Thanks for accepting my answer.