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I want to sell some shares before the tax year ends and was wondering when disposal is deemed to have taken place for CGT purposes. Will this be the trade date or the settlement date?

07/04/2025

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Question

‘I want to sell some shares before the tax year ends and was wondering when disposal is deemed to have taken place for CGT purposes.  Will this be the trade date or the settlement date?

Answer

It’s the trade date.

For Capital Gains Tax (CGT) purposes in the UK, the date of disposal is generally considered to be the trade date, not the settlement date. The trade date is when you enter into the contract to sell the shares (i.e, when the transaction is agreed upon), and this is the point at which the disposal is deemed to occur for CGT purposes. This is based on HMRC’s guidance, which focuses on the date of the legal agreement rather than when the funds or assets are actually transferred.