Selling shares - tax due?

[AndyD360]

Hi all,

OH has shares from a previous employer - SAYE scheme - pre 2002.

Looking at the gov.uk website, can’t determine whether she can sell more than £2k worth in each tax year without incurring CGT.

Can anyone shed any light on this please?

[abzmike]

£3,500 profit per year is the CGT threshold as I understand it.

[frisbee]

You could potentially transfer them into an ISA or pension and not pay any tax.

[CharlesElliott]

CGT allowance is currently £3K, but she needs to look at the terms of the scheme as approved SAYE schemes have different rules.

[LeoSayer]

frisbee said:

You could potentially transfer them into an ISA or pension and not pay any tax.

You can only contribute cash to an ISA. I assume pensions are the same.

[LeoSayer]

AndyD360 said:

Hi all,

OH has shares from a previous employer - SAYE scheme - pre 2002.

Looking at the gov.uk website, can’t determine whether she can sell more than £2k worth in each tax year without incurring CGT.

Can anyone shed any light on this please?

The registrar of the company should be able to tell you the transactions that have given rise to your OH's holding.

From that you should be able to find the historic share prices and then back calculate the cost of the holding and then the profit when selling them to avoid CGT.

[John D.]

LeoSayer said:

frisbee said:

You could potentially transfer them into an ISA or pension and not pay any tax.

You can only contribute cash to an ISA. I assume pensions are the same.

He means a stocks and shares ISA

[LeoSayer]

John D. said:

LeoSayer said:

frisbee said:

You could potentially transfer them into an ISA or pension and not pay any tax.

You can only contribute cash to an ISA. I assume pensions are the same.

He means a stocks and shares ISA

So do I.

[xeny]

LeoSayer said:

You can only contribute cash to an ISA. I assume pensions are the same.

https://www.barclays.co.uk/help/smart-investor/managing-your-account/can-i-lodge-shares-in-my-isa/

Barclays said:

If you receive a certificate for your Save As You Earn (SAYE) shares then it is not possible to place them directly in an ISA. The only shares that can be transferred directly into an ISA, from a SAYE scheme, are those held electronically with Global Stocks and Rewards (GSAR) where the request to transfer the shares into an ISA is within 90 days of exercising their option.

[LeoSayer]

xeny said:

LeoSayer said:

You can only contribute cash to an ISA. I assume pensions are the same.

https://www.barclays.co.uk/help/smart-investor/managing-your-account/can-i-lodge-shares-in-my-isa/

Barclays said:

If you receive a certificate for your Save As You Earn (SAYE) shares then it is not possible to place them directly in an ISA. The only shares that can be transferred directly into an ISA, from a SAYE scheme, are those held electronically with Global Stocks and Rewards (GSAR) where the request to transfer the shares into an ISA is within 90 days of exercising their option.

Thanks, that's a new one on me.

[alscar]

Assuming you are married she could also transfer some to you prior to sale so you both make use of your £3k allowance and of course time the transactions so that 2 tax years are involved.

[DaveH23]

John D. said:

LeoSayer said:

frisbee said:

You could potentially transfer them into an ISA or pension and not pay any tax.

You can only contribute cash to an ISA. I assume pensions are the same.

He means a stocks and shares ISA

I believe these have to be transferred to an ISA within 90 days of SAYE Maturity.

CGT is only payable on profit not on total sale value.

[Sheepshanks]

LeoSayer said:

You can only contribute cash to an ISA. I assume pensions are the same.

A few things have to align but you can do in specie transfers to both.