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Tax on freeholding


How is tax calculated on a trade of shares where the profits are freeholding remaining shares

For example:

Buy 100 shares of abc at $1

Sell 50 shares of abc at $2

Is there any tax calculated as payable on that trade?

1 person has
this question
  • Hi Kyle,

    While we are not legally able to provide tax advice, the following would be how Sharesight would work (from a Gain/Loss perspective):

    100 Shares at $1 = cost base of $100

    If you Sell 50 Shares at $2, your cost base is reduced by $50 (50 x $1) and you have made a gain of $50 on the sale.

    However, you still have a cost base for this holding of $50 (50 Shares remaining which were purchased at $1).

    Again, in terms of tax advice, it would be best to speak to an accountant or tax professional.

    Hope this helps.

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