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  • FIRST POST
    • rangers_fc
    • By rangers_fc 7th Jan 18, 12:08 PM
    • 341Posts
    • 48Thanks
    rangers_fc
    Tax On Share Investments
    • #1
    • 7th Jan 18, 12:08 PM
    Tax On Share Investments 7th Jan 18 at 12:08 PM
    I donít understand the tax element to investing I will try and explain my circumstances for clarification purposes
    Holdings

    F&C Inv Trust £17,000 held approx. 10 years non ISA
    IWEB VLS Life Strategy £30,000 held approx. 6 months non ISA
    Charles Stanley Account £10,000 approx 6 months non ISA
    ISA Aberdeen Inv Trust fully utilised this tax year

    My F&C investment has been historic what I actually paid for the shares is water under the bridge , lost in the ethos of time. When would I be liable to pay tax on my holding.
    Ive utilised my ISA this year but am unsure if I should sell investment outside my ISA to utilise the tax free wrapper in April. I realise you get a £11000 tax free allowance each year however does this include any savings interest, How does wages fit into your tax free allowance.
    Am I liable for tax when I sell an investment and is it only on profits accrued?
    For example my F&C holding was bought over a 10 year period in the 1990s how do I work out if there is tax to be paid or would F&C automatically pay tax on my shares if I cashed in excess of £11,000. For example lets say I paid £6000 for this investment, what is the tax implication if itís the only investment I cash in this tax year.
Page 1
    • jimjames
    • By jimjames 7th Jan 18, 12:12 PM
    • 12,344 Posts
    • 10,927 Thanks
    jimjames
    • #2
    • 7th Jan 18, 12:12 PM
    • #2
    • 7th Jan 18, 12:12 PM
    CGT is completely separate to income tax, there is no connection.

    So if you sell £17k of shares that only cost £6k then you will have no tax to pay as it's within the £11k allowance.

    You're responsible for paying the tax, it's nothing to do with the broker or company you bought
    Remember the saying: if it looks too good to be true it almost certainly is.
    • redux
    • By redux 7th Jan 18, 1:22 PM
    • 17,823 Posts
    • 22,934 Thanks
    redux
    • #3
    • 7th Jan 18, 1:22 PM
    • #3
    • 7th Jan 18, 1:22 PM
    Am I liable for tax when I sell an investment and is it only on profits accrued?
    For example my F&C holding was bought over a 10 year period in the 1990s how do I work out if there is tax to be paid or would F&C automatically pay tax on my shares if I cashed in excess of £11,000. For example lets say I paid £6000 for this investment, what is the tax implication if itís the only investment I cash in this tax year.
    Originally posted by rangers_fc
    Somewhere in the platform you can find the acquisition cost. This will consist of the original payments in, plus reinvested dividends, and usually stated as an average price.

    If you're intending to keep the holding longer term, and this is just a question of switching it into an ISA, then you might do it in next tax year as you've already used this year's ISA allowance.

    Or leave it longer. You might be thinking of other new investments that might go straight in the next ISA. Or some platforms have higher annual holding fees for ISAs than on their ordinary shares account, so there might not be much of a rush to churn these holdings in.
    • greatkingrat
    • By greatkingrat 7th Jan 18, 2:26 PM
    • 75 Posts
    • 77 Thanks
    greatkingrat
    • #4
    • 7th Jan 18, 2:26 PM
    • #4
    • 7th Jan 18, 2:26 PM
    To be safe, if you can't find the original acquisition price, then you could still sell up to £11300 now, and the remainder after April in the next tax year.
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