How do I reset the cost base/apply for CGT relief for part of an investment's parcel?
What to do in Simple Fund 360
The parcel that we wish to reset a portion of its cost base will need to be split into two "sub parcels"
One of these sub parcels will represent the portion of the cost base to be reset
Once this is done, we can reset the cost base of this newly created sub-parcel as we would do using the Corporate Actions screen.
We have a parcel of 4,213 shares in ABC of which we only want to reset the cost base for 213 of those shares. This means that 4,000 shares will not have their cost base reset
Record the transactions splitting the parcel into the "sub-parcel" that we wish to reset.
This will be represented by posting two journals. One will be the disposal of the sub-parcel at cost to trigger no capital gains/losses followed by a journal repurchasing the sub-parcel.
Investment Movement Data Clearing Account 94910 will be used to balance both journals.
Units: The number of units you wish to reset their cost base
Amount: The portion of the cost base you wish to reset
Calculated here at 5,055.73: (213÷4213) × 99,999.07
Click the button to view the Disposal Details screen
Set the Disposal Method to Manual and enter the units amount in the Units to Sell box
Post this transaction and enter the repurchase transaction
Click the button to view the Investment Purchase Details screen
Backdate the CGT dates to the original parcel's acquisition date.
This will ensure that the parcel can be processed by the Corporate Actions screen
Post this transaction to create the new sub parcel
Please Note: The usual rules still apply for accessing Transitional CGT Relief; the contract date must be before 9th November 2016 to be eligible for the CGT reset
Process the Cost Base through the Corporate Actions screen.
The parcel will now display in the Cost Base Reset screen under Corporate Actions.
Tick the newly created parcel and reset the cost base as you would using the Corporate Actions screen
For more information on resetting an investment's cost base, please refer to How to record Transitional CGT Relief (Cost base reset)