SAYE share scheme maturing

[Martyn76]

Hi All,

As per the title I have a SAYE company share scheme which matures in September, (I started it 5 years ago with the view of it paying for a big family holiday to Florida), in that time the share price has rocketed from 164p to 634 (as of this morning) meaning I am due just over £20k should I cash the shares in.

Holiday needs paid by the end of the year (ideally as soon as I sells the shares) the rest could be left as shares and then sold a few months later? Just looking for advise or suggestions on best way to manage\lessen the tax hit if at all possible as ti undertand Im liable for capital gain tax?

This is not my area of expertise!


Cheers in advance

Martyn

[fat80b]

Shares from an saye scheme can be transferred directly into an ISA if you haven't yet used your allowance for the year.

You can also transfer some to a spouse if you need to as well.

Plus you have the capital gains tax allowance to use so you should be able to avoid paying any tax at all on this amount.

When I was in a similar situation, I sold them all as soon as possible - too many people hang on to them for strange reasons - ask yourself if you had the money instead, would you be going out of your way to buy shares in your company at the price today and the answer is almost certainly no..

Bob

[Martyn76]

fat80b said:

Shares from an saye scheme can be transferred directly into an ISA if you haven't yet used your allowance for the year.

You can also transfer some to a spouse if you need to as well.

Plus you have the capital gains tax allowance to use so you should be able to avoid paying any tax at all on this amount.

When I was in a similar situation, I sold them all as soon as possible - too many people hang on to them for strange reasons - ask yourself if you had the money instead, would you be going out of your way to buy shares in your company at the price today and the answer is almost certainly no..

Bob

Hi Bob,

Thanks for the reply,

When you mention the capital gains tax allowance surely I would still need to pay tax on the remaining amount over £11300 or is transferring some to my wife a way around this?

This amount of money never comes my way so keen to keep hold of as much as I can and use for our holiday.

[bimsb6]

Martyn76 said:

Hi Bob,

Thanks for the reply,

When you mention the capital gains tax allowance surely I would still need to pay tax on the remaining amount over £11300 or is transferring some to my wife a way around this?

This amount of money never comes my way so keen to keep hold of as much as I can and use for our holiday.

You both get an allowance so 2 x £11300

[craig1912]

https://www.gov.uk/tax-employee-share-schemes/tran...

You can transfer up to £20000 into the Isa and then once in an ISA there is no CGT to pay if you sell them.

Edited by craig1912 on Monday 7th August 14:47

[Martyn76]

craig1912 said:

https://www.gov.uk/tax-employee-share-schemes/tran...

You can transfer up to £20000 into the Isa and then once in an ISA there is no CGT to pay if you sell them.

Edited by craig1912 on Monday 7th August 14:47

ISA looks like a winner!

[Jon39]

fat80b said:

When I was in a similar situation, I sold them all as soon as possible - too many people hang on to them for strange reasons - ask yourself if you had the money instead, would you be going out of your way to buy shares in your company at the price today and the answer is almost certainly no..

Bob

Most of my colleagues did exactly that with their SAYE schemes, many years ago.
Bought cars, holidays etc.
One fellow spent his proceeds on a porch. A porch, not a Porsche. -

It was a wonderful business at the time, and steady growth has continued.
Very concentrated risk of course.
With hindsight, all those colleagues would now have holdings worth half a million, and annual dividend income of almost £20,000.

If going from 164p (presumably with the scheme discount) to 634p, is accompanied by that rate of company earnings growth, then you are probably employed by a good business. After an increase like that, one might think that the peak has been reached, but it always depends upon future profits.

CGT has already been commented on. Not sure if it was mentioned, that the CGT allowance is every year, so sometimes shareholders sell part in March and some more after April 5th, to use two lots of allowance. With the steps mentioned, and the amount, you should not have to pay any CGT.