In recent months, we have once again experienced great difficulty in calculating Capital Gains results for clients, in particular in relation to shareholdings.
The calculation of capital gains is basically the sale price, less the cost of the asset.
This requires the keeping of records for the purchase and associated costs of all assets. If shares have been bought in 2000, then the details need to be kept until they are sold and then for another five years after the assessment.
We have seen clients throw out these records believing them to be past the time to retain them. This is not the case and causes great difficulty in reconstructing the information.
This is sometimes the situation when there is a death in the family and no one knows any of the details of shareholding or the relevant information required.
Please also remember that if you are dividend reinvesting, each time you are purchasing new shares and so the dividend reinvestment record needs to be kept.
We would encourage everyone holdings shares, or properties to have good clean records detailing all of these assets and their cost. We are happy to keep a record on file for you or family members so that the CGT matters can be dealt with quickly and accurately.
This article appeared in our February 2019 newsletter. Author: Kevin Dick
