Paying off the mortage with my SAYE... options
Discussion
Hey folks,
Right now I have over £33,000 in my dealing account from my SAYE that matured a few weeks ago. My remaining mortgage is £35,274 at an eye watering 8.2% for the last 6 months because I am on SVR because I knew this was coming up and wanted to avoid a large early redemption charge.
I am in the process of bed and ISA'ing the first 20K. The remainder will have to be done on 7th April as new tax year, new allowances. My question is...
Can I also take the share allowance allowed per person per year (£3600?) and pull that money directly from my dealing account without incurring a tax on it or shall I just wait and wash it through bed and isa again in April?
If it makes a difference I also have about £2K directors remuneration coming in, after tax, in the next few weeks.
Right now I have over £33,000 in my dealing account from my SAYE that matured a few weeks ago. My remaining mortgage is £35,274 at an eye watering 8.2% for the last 6 months because I am on SVR because I knew this was coming up and wanted to avoid a large early redemption charge.
I am in the process of bed and ISA'ing the first 20K. The remainder will have to be done on 7th April as new tax year, new allowances. My question is...
Can I also take the share allowance allowed per person per year (£3600?) and pull that money directly from my dealing account without incurring a tax on it or shall I just wait and wash it through bed and isa again in April?
If it makes a difference I also have about £2K directors remuneration coming in, after tax, in the next few weeks.
Are you referring to the option of transferring 20K of SAYE shares into an ISA as described here? https://www.gov.uk/tax-employee-share-schemes/tran...
If so i believe this is different to bed and ISA and your ability to transfer the amount over £20k in the next tax year is dependent on when you exercised your share options. I've specifically delayed mine for this reason
If so i believe this is different to bed and ISA and your ability to transfer the amount over £20k in the next tax year is dependent on when you exercised your share options. I've specifically delayed mine for this reason
I guess put simply
1) I am bed and isa'ing 20K. That leaves 10K+ in dealing account
2) Alongside the ISA I believe an individual can earn £3600 in shares before tax is due.
3) Can I take out £3600 from what is left in the dealing account to add to the mortgage payment in order to drop the interest paid over the next few months whilst we wait for the new tax year?
4) Is point 3 worth it to save £4ish a day.
1) I am bed and isa'ing 20K. That leaves 10K+ in dealing account
2) Alongside the ISA I believe an individual can earn £3600 in shares before tax is due.
3) Can I take out £3600 from what is left in the dealing account to add to the mortgage payment in order to drop the interest paid over the next few months whilst we wait for the new tax year?
4) Is point 3 worth it to save £4ish a day.
Not sure where you get the £3.6k "allowance" from.
You need to work out what your potential profit/gain is on the shares in your dealing account (i.e. selling price less cost x number of shares sold).
In the current tax year, if you sell your shares, any gain/profit over £3,000 i.e. your Capital Gains Allowance will be subject to CGT (assuming you don't have any other gains).
If you transfer £20k's worth of shares to an ISA, as long as the cost of those shares was over £17k then there's no CGT to pay. If the cost was say £10k, the gain would be £10k, and CGT is due on £7k of that gain after your £3k CGT allowance.
You need to work out what your potential profit/gain is on the shares in your dealing account (i.e. selling price less cost x number of shares sold).
In the current tax year, if you sell your shares, any gain/profit over £3,000 i.e. your Capital Gains Allowance will be subject to CGT (assuming you don't have any other gains).
If you transfer £20k's worth of shares to an ISA, as long as the cost of those shares was over £17k then there's no CGT to pay. If the cost was say £10k, the gain would be £10k, and CGT is due on £7k of that gain after your £3k CGT allowance.
Gassing Station | Finance | Top of Page | What's New | My Stuff