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I already have 5000 shares in X company. I buy 1000 shares in same company today. If I sell 1000 shares tomorrow, which shares have I sold?...

Question

I already have 5000 shares in X company. I buy 1000 shares in same company today. If I sell 1000 shares tomorrow, which shares have I sold? - Posted by Annie

Answer

ANSWER 10th January 2012

Hi Annie,

The shares you buy are pooled and the sales are set against that pool. So you buy 5000 then 1000 and you have a pool of 6000 shares at the average cost price per share. There are other rules for CGT when you sell and buy back shares. Firstly trades that are dealt on the same day are matched. Then sales that are bought back within 30 days are matched (to prevent bed & breakfast). Then any other sales are matched against the pool.

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