Investment gains / tax question
Discussion
Hi All,
I've done fairly well out of some stocks i bought in individual companies just after Covid hit, and i'm now in a position whereby i want to pull some of the profits out. I am a 45% rate tax payer but am not clear on the rules around capital gains.
I know i get a tax free allowance per year, but my question is that even though the share dealing account is in my name, can i offset any of the tax by splitting or transferring to my wife? (Who doesn't work therefore doesn't hit the tax threshold).
EDITED because i've realised it's actually 5th May today, not 5th April!
One last question! When is the tax event triggered? As i constantly sell shares, leave the cash in my share dealing account, and then reinvest hours or days later. Do i declare uninvested sums in my account, or only once i withdraw into my bank account?
Thanks in advance!
I've done fairly well out of some stocks i bought in individual companies just after Covid hit, and i'm now in a position whereby i want to pull some of the profits out. I am a 45% rate tax payer but am not clear on the rules around capital gains.
I know i get a tax free allowance per year, but my question is that even though the share dealing account is in my name, can i offset any of the tax by splitting or transferring to my wife? (Who doesn't work therefore doesn't hit the tax threshold).
EDITED because i've realised it's actually 5th May today, not 5th April!
One last question! When is the tax event triggered? As i constantly sell shares, leave the cash in my share dealing account, and then reinvest hours or days later. Do i declare uninvested sums in my account, or only once i withdraw into my bank account?
Thanks in advance!
Edited by nick s on Wednesday 5th May 10:25
Edited by nick s on Wednesday 5th May 10:41
nick s said:
It's also the last day of the tax year today, so should i be pulling £12,300 out today? Then £12,300 out tomorrow and i'd avoid capital gains tax? (Assuming i don;t cash any more in for the rest of FY 21/22).
You would, but you're a month late - the 20/21 tax year ended on 5 April!dingg said:
PM3 said:
Just to poke a bit of fun .....being a 45% tax payer and not knowing the date by a month , what sort of work or job gets you there ?
Ifa :-) To answer your question though; Large enterprise IT sales.
nick s said:
It's also the last day of the tax year today, so should i be pulling £12,300 out today? Then £12,300 out tomorrow and i'd avoid capital gains tax? (Assuming i don;t cash any more in for the rest of FY 21/22).
You've missed the boat, as Simpo has said. In addition the £12,300 allowance is the amount of gain you are allowed to make before paying CGT so it's not a simple as just selling £12,300 worth of stocks; you'd need to sell the proportion of stocks that generated that gain, ie if you'd made exactly £12,300 you'd need to sell all of the stocks.nick s said:
One last question! When is the tax event triggered? As i constantly sell shares, leave the cash in my share dealing account, and then reinvest hours or days later. Do i declare uninvested sums in my account, or only once i withdraw into my bank account?
The liability is triggered when you sell an asset although it's declared when you submit your SA tax form. Of course you can offset losses made during the year.If you've been buying & selling lots of shares you are about to enter a world of pain in calculating your CGT liability. I hope you either have good records or the platform you use can generate the report for you.
nick s said:
dingg said:
PM3 said:
Just to poke a bit of fun .....being a 45% tax payer and not knowing the date by a month , what sort of work or job gets you there ?
Ifa :-) To answer your question though; Large enterprise IT sales.
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