Selling shares

[Simon Bags]

Afternoon everyone. Question. Is there a maximum value of shares I can sell each Financial year without incurring any costs to HMRC?

Thanks, Simon.

[Boosh-36]

Believe it is based on capital gains not share volume.

You get a 3k allowance each financial year (eg, a gain from your investment).
After that you pay different levels depending on which tax bracket you're in.

All gains from stocks and shares isa are tax free.

[Simon Bags]

Boosh-36 said:

Believe it is based on capital gains not share volume.

You get a 3k allowance each financial year (eg, a gain from your investment).
After that you pay different levels depending on which tax bracket you're in.

All gains from stocks and shares isa are tax free.

Perfect, thank you.

[Simon Bags]

Morning, sorry to bring this up again but I have a question. If I own shares in 2 seperate Companies and I want to sell both, if Company A gave me a profit of £4k, but Company B lost me £2k, do I pay CGT on the £1k over the £3k limit, or do I pay nothing as when adding both profits together I've only made £2k?

Many thanks, Simin.

[Mr Pointy]

Simon Bags said:

Morning, sorry to bring this up again but I have a question. If I own shares in 2 seperate Companies and I want to sell both, if Company A gave me a profit of £4k, but Company B lost me £2k, do I pay CGT on the £1k over the £3k limit, or do I pay nothing as when adding both profits together I've only made £2k?

Many thanks, Simin.

You can offset the loss.

[Simon Bags]

Mr Pointy said:

You can offset the loss.

So no CGT? Sorry for the stupid questions, due a very sad change in my life I've suddenly been landed with sorting this out and I've no real idea what I'm doing.

Simon.

[alscar]

Mr Pointy said:

Simon Bags said:

Morning, sorry to bring this up again but I have a question. If I own shares in 2 seperate Companies and I want to sell both, if Company A gave me a profit of £4k, but Company B lost me £2k, do I pay CGT on the £1k over the £3k limit, or do I pay nothing as when adding both profits together I've only made £2k?

Many thanks, Simin.

You can offset the loss.

And to answer your following question ,correct no CGT as your profit for the tax year is “ only “ £2k so another £1k “ remains in allowance.
You can also carry forward losses so had you lost say £2k with no gains you could then carry that £2k forward to the next year to be offset against any gains.

[Simon Bags]

alscar said:

And to answer your following question ,correct no CGT as your profit for the tax year is “ only “ £2k so another £1k “ remains in allowance.
You can also carry forward losses so had you lost say £2k with no gains you could then carry that £2k forward to the next year to be offset against any gains.

Brilliant, thank you ever so much.

Simon.

[Mr Pointy]

Don't forget you can deduct any buying or selling costs from your "profit" as well. it's probably not much but it's allowable.