I'm in a bit of a pickle with regards to my tax residency. I am not sure whether I should pay my Capital Gains tax in the UK or Romania for the 2019 tax year.

I made a lot of transactions last year, and I've been using the UK shares pooling approach, keeping in mind the same-day and bed-and-breakfast rules. However, I recently learned that Romania mandates that we should use either FIFO (first-in, first-out), LIFO (last-in, first-out) or WAV (weighted average cost).

If it turns out that I have to pay CGT in Romania, I'd prefer not to redo my calculations. Can the UK methodology be classified as WAV?

Edit: I've seen one flag to close this question. I know that the topic is more accounting-focused rather than personal finance, but there is no other adequate StackExchange forum to ask this question on.

  • In the USA we have a variety of inexpensive software programs to calculate taxes due. Some can be linked directly to one's brokerage accounts for download. Is their something similar available to you that will indicate which locale is better for you? – Bob Baerker Apr 29 at 12:13
  • Yes, there are a few, but my question is specifically about the taxonomy of the accounting used in the UK. That is, whether it can be classified as WAV. If yes, I can keep my spreadsheets as they are. If not, I'd have to redo all of them, and that will take ages. – Paul Razvan Berg Apr 29 at 12:18
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    Oh, and my situation is a bit more complex. There's no software that can calculate my taxes due. I tried a bunch of different providers. This is the cost I'm paying for being an early adopter of Decentralized Finance. – Paul Razvan Berg Apr 29 at 12:24
  • If the software links directly with the broker, there is no need for spreadsheets since the program downloads all trades into it, matches them and then applies the appropriate tax law for the designated country. Taxonomy is built in. – Bob Baerker Apr 29 at 12:24
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    Despite the word accounting in the title (and as a tag), I would argue that this question is on-topic as it is asking about the compatibility (or not) of how (personal) Capital Gains Tax is calculated. My hunch (without having seen anything on Romania's rules) is that UK system does involve a weighted average – the price at the time of each purchase is weighted by the number of shares purchased to give the average price per share. – TripeHound Apr 30 at 13:26

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