Glossary · UK
What is Section 104 Pool?
Aggregated holding of identical shares used for CGT cost-basis calculation under HMRC rules.
Full Definition
The Section 104 pool (also called the share pool) is the default holding of identical shares of the same class in the same company once the same-day and 30-day rules have been applied. All other acquisitions and disposals are added or removed using pooled average cost. When you sell from the pool the cost-basis per share is the total pool cost divided by the number of shares held — this is why drip-fed monthly investments produce a single moving average price rather than first-in-first-out matching. Each disposal reduces both the share count and the pool cost proportionally.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.