Closed KapJI closed 3 years ago
That's curious. I will add a test case. I would expect that it would be matching B&B as well, of course.
Oh, no I see. Why would you expect B&B there? Let's number the transactions:
1) BUY 02/03/2020 FOO 100 25 6
2) BUY 03/03/2020 FOO 154 27.70 10
3) SELL 03/03/2020 FOO 254 28.03 15
4) BUY 06/03/2020 FOO 90 28 5
5) SELL 06/03/2020 FOO 90 27 5
Shouldn't 4 and 5 match completely first as they're same day. So then you're left with 3 matching partially against same day transaction 2, and then section 104 for 1.
Also the calculator should be combining transactions (of same type, buy or sell) done on the same day already into one.
@KapJI - let me know if you disagree with the interpretation above. It's my understanding that you first match all the same day transactions, then go over and do B&B, then go over the remaining ones and apply section 104.
FWIW, http://cgtcalculator.com/ agrees with this calculator.
I re-read https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg51560 and I think your interpretation is correct:
If the number of shares acquired exceeds the number sold on the same day the surplus is added to the Section 104 holding, unless they are identified with disposals under the ‘bed and breakfast’ rule, see below.
First, "same day rule" is not being applied correctly: From https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg51560:
For input like this:
It should first be transformed into these transactions:
And even if I do this manually output doesn't seem correct. Here is what I get:
In fact "bed and breakfast" rule should be used before "section 104". And I expect something like this:
Current output