Selling Shares

[gcollins]

I will be selling some of my portfolio hopefully later on in the year or early next year. I haven't put any of my shares into ISA's so i will be liable for tax i assume. Obviously i'm going to try to avoid any tax implications so is there any way to avoid. Will be dumping around £50k.

I know i'm allowed around £10200 before tax. Any suggestions.

[Newc]

- Can you sell some this tax year and some next ?
- Are all your shareholdings in profit or can you match up some losses ?
- Are you married and if so does your spouse have any CGT allowance remaining ?

[otherman]

Its £10,600 this year, and this is on the profit you make not on the sale value, so you deduct what you paid for them. If you sell half in march and half in april there's not tax unless you're going over £21,200 and on 50k of shares that would be some going.

[wattsm666]

gcollins said:

I will be selling some of my portfolio hopefully later on in the year or early next year. I haven't put any of my shares into ISA's so i will be liable for tax i assume. Obviously i'm going to try to avoid any tax implications so is there any way to avoid. Will be dumping around £50k.

I know i'm allowed around £10200 before tax. Any suggestions.

Is the 50k a gain or the proceeds, what was the original cost?

[sumo69]

If you have a PROFIT of over £10600 which you realise prior to April 5 2013 then CGT would be payable.

There are ways to mitigate this by spreading the sale over 2 tax years, selling any shares which have a loss or transferring shares to your spouse prior to sale to take advantage of her exempt amount.

David

[gcollins]

sumo69 said:

If you have a PROFIT of over £10600 which you realise prior to April 5 2013 then CGT would be payable.

There are ways to mitigate this by spreading the sale over 2 tax years, selling any shares which have a loss or transferring shares to your spouse prior to sale to take advantage of her exempt amount.

David

The amount that i quoted will be profit, so less £10600 from £50k then £39400 taxable.

Daft question if i release small amounts into my bank account how would the tax man find out

[Eric Mc]

The tax is based on the date of the sale - not the date you banked the proceeeds of the sale.

If you try to disguise the date of the sale by delaying the collection and banking of the proceeds, you are, in effect, commiting a tax fraud - so you will have to live with the risk of HMRC finding you out for the rest of your life.

The legal way to split the gain is to spilt the actual disposal between two or more tax years, as has already been mentioned.

[gcollins]

Eric Mc said:

The tax is based on the date of the sale - not the date you banked the proceeeds of the sale.

If you try to disguise the date of the sale by delaying the collection and banking of the proceeds, you are, in effect, commiting a tax fraud - so you will have to live with the risk of HMRC finding you out for the rest of your life.

The legal way to split the gain is to spilt the actual disposal between two or more tax years, as has already been mentioned.

This does appear the best option, thanks....

[Eric Mc]

There is also the option of Rollover Relief - which means that any proceeds reinvested in another capital asset may postpone taxation of the gain on the share disposal until the new replacement asset is eventually disposed of at a later date.

You would probably need some specialist advice on this.