Anyone with knowledge on CGT on sales of shares
Discussion
I'm about to purchase a second property and to fund this I am going to be selling some shares, some of which I've had a few years. I have just tried to fathom out possible CGT tax implications from the Tax website but to be honest I'm lost. HEre's what I have and thinking of selling:
1. A single share PEP I have had since 1933, purchased for £250, worth about £1900. I'm assuming I have no liability for this profit?
2. I have an ISA purchased in 2003 for £3000, worth about £4000. I'm assuming I have no liability for this profit?
3. I have about £900 worth of shares that I bought on a monthly share save scheme around 7-8 years ago, no clue about how to work out the liability here?
4. I have some Halifax preference and B&B shares worth around £1500 from when they floated I don't know how many years ago. As I paid nothing for them I assume I have a liability for the full amount but is this offset by the number of years owned?
5. I have some GKN shares purchased in 1998 through a share save scheme worth around £5000. Same questions as above, they are completely profit but have been owned for quite a few years?
6. Now the killer, I have some shares in the company I work for right now. Some purchased through a monthly scheme, some gifted based on performance. Total value £11k, probable cost £3k. The monthy scheme was between 1998 and 2000, the gifts were over the last two years. Same question as above, can any of this be offset based on the years owned?
Is there still a value thayt can be sold with no liability for CGT tax? If this is still the case I will probably be selective in what I get rid off! Wish I made the decision a few weeks ago from the last tax year but hey ho ...
Any advice welcomed!
1. A single share PEP I have had since 1933, purchased for £250, worth about £1900. I'm assuming I have no liability for this profit?
2. I have an ISA purchased in 2003 for £3000, worth about £4000. I'm assuming I have no liability for this profit?
3. I have about £900 worth of shares that I bought on a monthly share save scheme around 7-8 years ago, no clue about how to work out the liability here?
4. I have some Halifax preference and B&B shares worth around £1500 from when they floated I don't know how many years ago. As I paid nothing for them I assume I have a liability for the full amount but is this offset by the number of years owned?
5. I have some GKN shares purchased in 1998 through a share save scheme worth around £5000. Same questions as above, they are completely profit but have been owned for quite a few years?
6. Now the killer, I have some shares in the company I work for right now. Some purchased through a monthly scheme, some gifted based on performance. Total value £11k, probable cost £3k. The monthy scheme was between 1998 and 2000, the gifts were over the last two years. Same question as above, can any of this be offset based on the years owned?
Is there still a value thayt can be sold with no liability for CGT tax? If this is still the case I will probably be selective in what I get rid off! Wish I made the decision a few weeks ago from the last tax year but hey ho ...
Any advice welcomed!
The simple part is that you only pay tax when your total gains for the year exceed £9,200.
The complicated part is that you have all sorts of shares acquired in various ways at various times.
Thhe calculation of gains on share sales is probably the most complicated are of CGT. Different rules apply in different circumstances.
Without knowing all the details it is impossible to calculate anything - and, on this type of situation, if I was asked to assist I would expect to be paid (sorry
)
The complicated part is that you have all sorts of shares acquired in various ways at various times.
Thhe calculation of gains on share sales is probably the most complicated are of CGT. Different rules apply in different circumstances.
Without knowing all the details it is impossible to calculate anything - and, on this type of situation, if I was asked to assist I would expect to be paid (sorry
)
At a rough guess it looks like you have no liability.
Ignore the PEPs and ISA. What is left will be so heavily tapered as to leave little liability which almost certainly will not get anywhere near the annual allowance.
You should be able to get a rough calc here: www.invidion.co.uk/capital_gains_tax_calculator.php
Ignore the PEPs and ISA. What is left will be so heavily tapered as to leave little liability which almost certainly will not get anywhere near the annual allowance.
You should be able to get a rough calc here: www.invidion.co.uk/capital_gains_tax_calculator.php
To avoid the calculation, and to be sure of avoiding CGT, sell no more than £9,200 worth of shares in this tax year.
If you're married transfer some to your wife and get her to sell £9,200 as well.
As has been said before, you can sell the ISAs and PEPs with no CGT liability worries.
If you're married transfer some to your wife and get her to sell £9,200 as well.
As has been said before, you can sell the ISAs and PEPs with no CGT liability worries.
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