Capital gains tax

[A4 cabrio]

Looking for some help please,

I enrolled in a 3 year “save as you earn” scheme at work which has just come to maturity & the share price for the scheme was set @ £1.50, I paid £75 per month which has earned me the right to buy 1800 shares at £1.50, that amounts to £2,700 & at today’s share price I would see £1,106 profit, so what I’d like to know is would I owe any tax on any profit I would make in buying the shares & then selling them on at today’s share price¿

[Eric Mc]

You have an annual Capital Gains Tax Allowance which for tax year 2017/18 is £11,300.

So, if the net gain is under £11,300, you will have no CGT liability arising.

[A4 cabrio]

Eric Mc said:

You have an annual Capital Gains Tax Allowance which for tax year 2017/18 is £11,300.

So, if the net gain is under £11,300, you will have no CGT liability arising.

Thanks, that’s good to hear. This is my 1st scheme so was just unsure, my next one isn’t due for 2more years as I changed to 5year options and also upped what I was putting in so I hope the CGT allowance stays at 11300 as the future schemes could be approaching that figure with a bit of luck

[GR_TVR]

Should you exceed the capital gains threshold I believe you can move share save scheme proceeds directly into an ISA, up to the £20k limit, without incurring capital gains tax.

[V40TC]

Also if needed give 50% of shares purchased to spouse at maturity,
then they can use their CGT allowance to lessen the tax burden.

[Deesee]

As well as the isa you can also pop them (or the cash) into a pension and get the tax relief added (20/40%)

[A4 cabrio]

Thankyou, I never realised I had so many options, I’d forgotten all about the scheme maturing until the email arrived requesting instruction. My next scheme will hopefully be above the current CGT threshold providing all turns out well so I will have to do some research to see what my best options are.

Thanks again for the helpful information.