CGT calculations / Average Share Price on Freetrade

Freetrade Chat šŸ”„
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Apologies since Iā€™m pretty certain this issue has been discussed a number of times, but Iā€™d just like to double-check my understanding of previous threads:

For CGT purposes, HMRC requires us to maintain a Section 104 total, which effectively gives us an average share price to use when it comes to partial disposals, whereas Freetrade operates a ā€˜Last in/Last outā€™ system which bears no relation to anything we need to use for tax purposes.

I only ask because I note that my ā€œaverage share priceā€ according to Freetrade went when down when I sold half of my holding, whereas obviously under the HMRC system this shouldnā€™t have changed.

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Freetrade operates first in first out (FIFO) and youā€™re right the average price is based on FIFO which bears no resemblance to real average
There is another thread dealing with average price and a vote to change this practice or at least give us the option to choose between the two.
Donā€™t expect this to change anytime soon though since FT have not even acknowledged this is a problem or why FIFO is chosen.
Basically theyā€™re using the same system as fruit and veg system (perishables) to calculate average

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Thank you for the clarification.