Sale of Shares and tax implications

[GIMPTON]

Have some shares that i wish to sell, do i need to declare to the tax man or is there a "limit" you need to receive for the sale before you are due to pay any tax?

Cheers

[fid]

Think the least you'll be paying is Stamp Duty @ 0.5% on the sale value plus commision, not sure about any CGT or otherwise, though.

[2 sMoKiN bArReLs]

Assuming it's simple & in the UK the "profit" is liable to capital gains tax.

Profit = selling price less cost.

Cost = buying price plus an allowance for inflation.

You can make a total CGT profit of about £8,800 06/07 without paying any tax.

There are other reliefs available, depending on circumstances.

[2 sMoKiN bArReLs]

...Eric'll be along in a minute to give you a more accurate synopsis

[fid]

2 sMoKiN bArReLs said:

You can make a total CGT profit of about £8,800 06/07 without paying any tax...

The £8,800 is the total for profits from 2nd. house sales, shares, etc., rather than just shares, ja?

[Eric Mc]

The £8,800 limit does indeed unclude the total of all gains from all disposals in the 2006/07 tax year.

Depending on how long you have owned an asset. you may be able to apply Taper Relief to the gain, which will also reduce the gain. Taper Relief for non-business assets kicks in after three years of ownership of the asset. Ownership of shares in companies is usually looked on as "non-business" unless yhe company is a small owner managed company and you are the owner manager of the company or an employee in the company.

[GIMPTON]

Ta muchly gents, thats what i needed to know