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Does transferring shares to or from Hatch impact my investment cost?
Does transferring shares to or from Hatch impact my investment cost?

Share transfers may cause your investment cost estimation to be incorrect in Hatch.

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Written by Support
Updated over 2 months ago
  • When we receive your shares, the cost price is often incorrectly recorded as the current share price, not the price you paid for them. This may temporarily (and incorrectly) cause your total cost price to go above $50,000 NZD, which is the Foreign Investment Fund (FIF) tax threshold in New Zealand

  • We manually update the cost price of your transferred shares to reflect the price when you paid for them. This may mean your actual peak investment cost falls back below $50,000. But...

  • The Hatch app can’t (yet) update your investment cost to remove the incorrect peak - so it will still show the original incorrect peak investment cost

  • This is a one-off event. In the next tax year and beyond, your total investment cost will be correct

If you transfer shares out of Hatch

  • Hatch will still include them in your peak investment cost calculation up until the date you transferred them

If you think share transfers might impact your investment cost estimation, get in touch with the Hatch team for more info.

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