Calculating Tax due on sale of Shares

[Digger]

I have 2 short questions on calculating tax due on shares, the revenue site isn't too clear on how I handle my problem.

IF I buy 1000 shares on 1st of Sept at 8.00 euro a share and then again on 7th of Sept. another 500 at 8.50 and I sell 400 on 1st of Oct for 9.00 euro.

I presume I take the 400 off the 1000 shares rather than from the 500 shares when I'm calculating my gain. i.e I apply FIFO rule on this transaction that has occurred within a 4 week period.

The revenue website explains the concept of FIFO but doesn't explain multiple transactions within a 4 week period. Am I correct in my assumptions or should I calculate it based on the 500 shares.

 

[DB74]

From Revenue CGT Guide:​

The FIFO rules are modified in any case where shares of the same class are bought and sold within a period of four weeks. Where shares are sold within four weeks of acquisition the shares sold are identified with the shares acquired within that period. Furthermore, where a loss accrues on the disposal of shares and shares of the same class are acquired within a four week period, the loss is not available for offset against any other gains arising. Instead the loss is only available for set off against any gain that might arise on the subsequent disposal of the shares so acquired in the four week period - this provision does not apply where there is a gain on the disposal.

In the case you outlined, you would have to use the cost of the 500 shares as your cost as the shares which were purchased on 01-Sep are just outside the 4-week period vis-a-vis a sales on the 01-Oct.

The wording of the Revenue Statement would indicate that it is LIFO where shares are bought & sold with the 4-week period.​

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[jack2009]

I would stick with the FIFO and understand that the LIFO rules would only kick in if the initial investments was outside the 4 week period.