Sharesave plan - tax question
Discussion
I've been contributing to my company's 3yr sharesave plan which is maturing now.
Option price is well below spot so I'm due to make a decent gain.
I have 2 options: liquidate some or all shares immediately on maturity date; receive a share certificate and hold them for sale at a later date.
For some reason the dealing commissions would be ~£40 for option 1 and £10 for option 2 (when I sell).
What is the CGT treatment on this kind of plan?
If I liquidate everything at maturity, am I liable for CGT on the gain (spot price minus option price)?
How would the CGT treatment differ if I decided to keep the shares and sell at a later date?
Option price is well below spot so I'm due to make a decent gain.
I have 2 options: liquidate some or all shares immediately on maturity date; receive a share certificate and hold them for sale at a later date.
For some reason the dealing commissions would be ~£40 for option 1 and £10 for option 2 (when I sell).
What is the CGT treatment on this kind of plan?
If I liquidate everything at maturity, am I liable for CGT on the gain (spot price minus option price)?
How would the CGT treatment differ if I decided to keep the shares and sell at a later date?
BoostMonkey said:
Also you have a tax free CGT allowance of £10,900 (2013/14) a year.
I'm betting as SS scheme are usally capped you should have no tax liability at all.
Yep realised that last night.I'm betting as SS scheme are usally capped you should have no tax liability at all.
As I don't have any other investments I should be well below the allowance so no problems at all!
Will keep the shares for now as expect some more upside in the coming months.
Thanks everyone!
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