How to work out CGT liability
Discussion
Hi all,
Until last year I worked for a blue chip company and over 10-15 years partook in partnership shares, purchased SAYE options and received some free shares. I also sold some of those shares at various periods. Total transactions will be in the hundreds as I was purchasing partnership shares monthly.
I left as a ‘good leaver’ following redundancy, so a quantity of shares in a holding period or subject to income tax/NI were available to me tax free (but not CGT free?).
How on earth do I go about working out my CGT liability should I wish to sell the lot? Would I need to pay someone to do this?
Thanks for any help :-)
Until last year I worked for a blue chip company and over 10-15 years partook in partnership shares, purchased SAYE options and received some free shares. I also sold some of those shares at various periods. Total transactions will be in the hundreds as I was purchasing partnership shares monthly.
I left as a ‘good leaver’ following redundancy, so a quantity of shares in a holding period or subject to income tax/NI were available to me tax free (but not CGT free?).
How on earth do I go about working out my CGT liability should I wish to sell the lot? Would I need to pay someone to do this?
Thanks for any help :-)
Have you not looked at the relevant HMRC web pages? Good information is available there including examples.
From the limited info you provide, it looks as if you should have considered CGT earlier as it seems you have made several disposals over time in the past, all qualifying for CGT liability.
Note that there is a CGT allowance for each tax year; currently it is £12,500. So, if the TOTAL gains in all disposals in this tax year does not exceed £12,500 there's no GCT to pay.
There is also a HMRC reporting threshold at 4 times the allowance, so if your TOTAL realisation is less than £50,000 for the current year you need not report anything as long as the total of all gains does not exceed the allowance.
If you have multiple deals over several tax years you may find that the simplest route is to hire an accountant to do the investigative work, calculations, and filings for you. And, by the way, I hope you have all the paperwork in a nice tidy order!
R.
From the limited info you provide, it looks as if you should have considered CGT earlier as it seems you have made several disposals over time in the past, all qualifying for CGT liability.
Note that there is a CGT allowance for each tax year; currently it is £12,500. So, if the TOTAL gains in all disposals in this tax year does not exceed £12,500 there's no GCT to pay.
There is also a HMRC reporting threshold at 4 times the allowance, so if your TOTAL realisation is less than £50,000 for the current year you need not report anything as long as the total of all gains does not exceed the allowance.
If you have multiple deals over several tax years you may find that the simplest route is to hire an accountant to do the investigative work, calculations, and filings for you. And, by the way, I hope you have all the paperwork in a nice tidy order!
R.
The Leaper said:
Have you not looked at the relevant HMRC web pages? Good information is available there including examples.
From the limited info you provide, it looks as if you should have considered CGT earlier as it seems you have made several disposals over time in the past, all qualifying for CGT liability.
Note that there is a CGT allowance for each tax year; currently it is £12,500. So, if the TOTAL gains in all disposals in this tax year does not exceed £12,500 there's no GCT to pay.
There is also a HMRC reporting threshold at 4 times the allowance, so if your TOTAL realisation is less than £50,000 for the current year you need not report anything as long as the total of all gains does not exceed the allowance.
If you have multiple deals over several tax years you may find that the simplest route is to hire an accountant to do the investigative work, calculations, and filings for you. And, by the way, I hope you have all the paperwork in a nice tidy order!
R.
I will look at the HMRC site, thank you for highlighting.From the limited info you provide, it looks as if you should have considered CGT earlier as it seems you have made several disposals over time in the past, all qualifying for CGT liability.
Note that there is a CGT allowance for each tax year; currently it is £12,500. So, if the TOTAL gains in all disposals in this tax year does not exceed £12,500 there's no GCT to pay.
There is also a HMRC reporting threshold at 4 times the allowance, so if your TOTAL realisation is less than £50,000 for the current year you need not report anything as long as the total of all gains does not exceed the allowance.
If you have multiple deals over several tax years you may find that the simplest route is to hire an accountant to do the investigative work, calculations, and filings for you. And, by the way, I hope you have all the paperwork in a nice tidy order!
R.
I do have a very basic understanding of CGT including allowances; I’ve not exceeded the allowance with any previous disposals and the current value doesn’t exceed £50k. Everything is online within a portal, so all the information should be available.
It can get moderately complex but the basic rule is that when selling shares that have been obtained in multiple batches over time, the capital gain is calculated based on the average price that they were bought at. Hopefully there is enough information in the online portal to enable you to calculate this.
Slight update sorry folks, if anyone has any further kind advice.
Looking at my transaction history, all the SIP shares I had acquired over many years were consolidated and allotted to my CSN account shortly after leaving the company.
As a ‘good leaver’ it looks like no CGT is chargeable whilst they were held in the SIP but only on any increase in value after later withdrawal.
Does this mean I’m only accountable for any increase in value since they were transferred from the SIP and into my CSN account?
Looking at my transaction history, all the SIP shares I had acquired over many years were consolidated and allotted to my CSN account shortly after leaving the company.
As a ‘good leaver’ it looks like no CGT is chargeable whilst they were held in the SIP but only on any increase in value after later withdrawal.
Does this mean I’m only accountable for any increase in value since they were transferred from the SIP and into my CSN account?
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