Capital Gains Question

[tinman0]

Held some shares in a company for several years. Now worth several grand and selling them in the next couple of weeks to the majority shareholder.

How much is the Capital Gains tax?

(5 shares owned for 7 years and originally bought for £1 each)

[southpaw]

Quite a lot for a few grands worth. Hold on, I'm sure I have it written down somewhere here....

[vixpy1]

Your personal allowance is roughly 7500 profit, then its 40%, but you must allow for indexation as well.

[southpaw]

The first £8,200 of an individual's net gains realised during the tax year is free of CGT. The excess is taxed as if it were the top slice of income, at the rates that apply to savings income, namely 10% on the first £2,020, 20% on the next £29,380 and 40% on the balance.

[Jez W]

Now got taper relief...rather than indexation. you need to take into account any other capital gains you have in the year.

[Eric Mc]

You may even have a combination of Indexation AND Taper Relief - depending on how long ago you first acquired the shares.

The calculation of CGT on share disposals can sometimes be quite tricky. I'd try and get a CGT specialist to help before you submit anything on a self assessment tax return.

[B16 RFF]

Whilst we're on the subject, I've got approx 1000 Scottish Power shares. They have announced that they will be returning approx $4.5 BILLION to shareholders following the sale of Pacificorp. Any idea how much I can expect? And what's the tax situation.
Enough for a Sagaris , or enough for a model of a Sagaris?

Thanks,

Paul.

[JonRB]

B16 RFF said:

Enough for a Sagaris , or enough for a model of a Sagaris?

[danww]

B16 RFF said:

Whilst we're on the subject, I've got approx 1000 Scottish Power shares. They have announced that they will be returning approx $4.5 BILLION to shareholders following the sale of Pacificorp. Any idea how much I can expect? And what's the tax situation. Enough for a Sagaris , or enough for a model of a Sagaris? Thanks, Paul.

Well based purely on an internet search an no actual knowledge whatsoever ... Scottish Power have 1,848 million shares on issue, so if the 4.5Bn is split equally across those then you ought to get about $24 per share which would be ... 24,000 USD ... so a good bit of a Sagaris but not quite a whole one.

However since their total market capitalisation is "only" 8.8Bn GBP that seems like a lot to dish out.

[vixpy1]

danww said:

B16 RFF said: Whilst we're on the subject, I've got approx 1000 Scottish Power shares. They have announced that they will be returning approx $4.5 BILLION to shareholders following the sale of Pacificorp. Any idea how much I can expect? And what's the tax situation. Enough for a Sagaris , or enough for a model of a Sagaris? Thanks, Paul. Well based purely on an internet search an no actual knowledge whatsoever ... Scottish Power have 1,848 million shares on issue, so if the 4.5Bn is split equally across those then you ought to get about $24 per share which would be ... 24,000 USD ... so a good bit of a Sagaris but not quite a whole one. However since their total market capitalisation is "only" 8.8Bn GBP that seems like a lot to dish out.

Errr.. i make that $2.4 per share.

[vixpy1]

B16 RFF said:

And what's the tax situation.

It will be returned as dividends i suspect.

[danww]

vixpy1 said:

danww said: B16 RFF said: Whilst we're on the subject, I've got approx 1000 Scottish Power shares. They have announced that they will be returning approx $4.5 BILLION to shareholders following the sale of Pacificorp. Any idea how much I can expect? And what's the tax situation. Enough for a Sagaris , or enough for a model of a Sagaris? Thanks, Paul. Well based purely on an internet search an no actual knowledge whatsoever ... Scottish Power have 1,848 million shares on issue, so if the 4.5Bn is split equally across those then you ought to get about $24 per share which would be ... 24,000 USD ... so a good bit of a Sagaris but not quite a whole one. However since their total market capitalisation is "only" 8.8Bn GBP that seems like a lot to dish out. Errr.. i make that $2.4 per share.

Quite right - decimal point f**k up. So 2,400 USD, er, how much is a model Sagaris?

[vixpy1]

danww said:

Quite right - decimal point f**k up. So 2,400 USD, er, how much is a model Sagaris?

Betcha work in the city.... in fact, you're my stockbroker in disguise i reckon, he always inflates figures as well

[Eric Mc]

If you receive the cash as an extra-large dividend, you may be surprised to learn that you will have NO tax liability on the dividend value UNLESS YOU ARE A HIGHER RATE TAX PAYER. If you DO pay tax at 40%, you might also be surprised to learn that the maximum rate of tax you will pay on the dividend itself will be 32.5% - and then only on that portion of the dividend that falls into the higher rate band.

[catso]

B16 RFF said:

Enough for a Sagaris , or enough for a model of a Sagaris? Thanks, Paul.

How good are you with 'Airfix' kits?

[B16 RFF]

Oh well, back to the lottery.
A windfall of $2400 will be very nice thank you.
Thanks guys.

Paul.