Starting to build the painful XLS on my day off 
I have a question about FX fees and right issues(corporate action).
Do I need to include the FX fees when calculating P/L for each position closed ? Is a bit confusing, so checking I’m doing the right thing.
I received some cash from my broker as part of “Corporate action”… I guess that has a £3000 allowance that I saw reported here ? Capital Gains Tax: share reorganisation, takeover or merger - GOV.UK
Yes, you should include the FX fee in the capital gain calculation. You can deduct all fees, FX, broker fees, Stamp Duty (SDRT). Same goes for property; legal fees, agent fees, etc.
It depends what the corporate action is. I once received some cash as part of a take over but I simply included it in my dividend calculation. I thinik the £3,000 allowance would have applied to it.
I recommend opening an ISA and forgetting about tax reporting though.
Ok, what makes sense to me is to record each buy and sell without FX fees. As FX fees to buy US shares for instance are taken before buying and after selling, as that is where the currency conversion happen… so there’s no point to include them otherwise they’ll alter the P/L…
They alter the P/L but that is the point, fees are tax deductible, it is beneficial to include them unless you are not doing this excercise for tax reporting reasons.
You could use the FX base rate to calculate what you paid per share and then substract the fee from the profit.
Is there an HMRC page about this ?
Ok so basically I can deduct the SELL exchange rate of freetrade from the P/L ?
Takes this example:
18/08/2020 FX_FEE 7 GBP fx fee taken for 51.3855643 Western Digital Corp (US9581021055) on 18-Aug-2020 14:11:03 GBP CASH_OUT -7
18/08/2020 SELL 51.3855643 Western Digital Corp (US9581021055) @ USD 39 (@ 1 GBP = 1.31090 USD) on 18-Aug-2020 GBP CASH_IN 1528.748957
11/08/2020 BUY 51.3855643 Western Digital Corp (US9581021055) @ USD 38.10000 (@ 1 GBP = 1.31090 USD) on 11-Aug-2020 13:49:40 (Requested 1500 GBP) GBP CASH_OUT -1493.47
11/08/2020 FX_FEE 6.72 GBP fx fee taken for 51.3855643 Western Digital Corp (US9581021055) on 11-Aug-2020 13:49:40 GBP CASH_OUT -6.72
How would you calculate the P/L ? Just SELL - BUY ? or SELL - BUY - (SUM of FX FEEs ?)
Also just to add to the question, when it comes to stamp duty deduction I guess the following applies:
P/L = Total SELL - Total BUY - Stamp duty.
You can deduct both fees, they are both expenses.
yes, deduct all fees and stamp duty.