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Avoiding CGT by putting shares in isa
monkfish_3
Posts: 41 Forumite
hi i wonder if anyone can help me.
I am in a sharesave scheme whereby money is deducted from my salary every month and after 3 yrs the total saved is given a bonus interest of around 5% and then this money is used to buy shares in my employer at a discounted rate. Basically after 3 yrs i will have put in £9000 and the shares i get would be worth today around £27K.
Now does this mean that if i sold them instantly i would be liable for 27k - cost (9k) - cgt allowance (9K i think) so 9k in capital gains tax.
Basically i've heard that i can avoid this by putting the shares into an isa can anyone elaborate
thanks in advance
I am in a sharesave scheme whereby money is deducted from my salary every month and after 3 yrs the total saved is given a bonus interest of around 5% and then this money is used to buy shares in my employer at a discounted rate. Basically after 3 yrs i will have put in £9000 and the shares i get would be worth today around £27K.
Now does this mean that if i sold them instantly i would be liable for 27k - cost (9k) - cgt allowance (9K i think) so 9k in capital gains tax.
Basically i've heard that i can avoid this by putting the shares into an isa can anyone elaborate
thanks in advance
0
Comments
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Yes, you will only be liable for CGT when you sell or give them away.
If you are amrried or in a civil partnership you could transfer some to your OH and then you'd have two lots of CGT allowance to use.
Alternatively sell some now and wait until the next tax year to sell the rest.
I think to put them in an ISA would mean you'd need a self select ISA and you would only be able to shift 7K's worth in a year.0 -
Hi, monkfish,Now does this mean that if i sold them instantly i would be liable for 27k - cost (9k) - cgt allowance (9K i think) so 9k in capital gains tax.
Not quite; it would be £9000 of gains liable to tax at 20% or 40% depending on your tax status.Basically i've heard that i can avoid this by putting the shares into an isa can anyone elaborate
You can move the shares into an ISA without crystallising a gain under certain circumstances; have a look here.0 -
so it looks like i can sell £18k worth instantly and put £7000 worth into a isa leaving me with just £2k that would be subject to cgt?0
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cheerfulcat wrote: »Hi, monkfish,
Not quite; it would be £9000 of gains liable to tax at 20% or 40% depending on your tax status.
You can move the shares into an ISA without crystallising a gain under certain circumstances; have a look here.
Surely £27k - £9k means there would be £18k of profit liable to CGT?0 -
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