So does this mean that if you bought an etf monthly for 12 months and sell all together you can just get the average cost of purchase , get the sale price and pay 41% of any gains?
I don't think so.
(a) each monthly investment has a different 8 year anniversary date and (b) you don't only report and pay the tax on disposal but every 8 years even if you keep holding them.
I don't think so.
(a) each monthly investment has a different 8 year anniversary date and (b) you don't only report and pay the tax on disposal but every 8 years even if you keep holding them.
Because it's hassle (see above and try to rember what investments you made 8 years ago) and the tax is onerous compared to CGT treatment of equities.
In that case - yes - you would do as you outlined.
But investing in an ETF for an average of 6 months is not a very prudent investment strategy.
Like any stock market instrument, your investment timeframe really should be much longer than that.