Is there a limit to amount of shares you can cash in each year?

scw1

My husband and I have about £14,000 worth of shares each and want to cash the majority of them in to pay off a large chunk of our mortgage when the current deal we are on ends in July.

However, is there a maximum amount we can remove without having to pay tax or anything else on? Or can we have as much as we want?

Thanks

adambro

Well you'll need to find how much it was you paid for the shares originally. From that you'll be able to work out whether you'll be liable for capital gains tax. You'll both have an allowance of £9,600 in this tax year. Once you've used up your allowance, anything above that will be taxed at 18%.

Since we are nearing the end of the tax year, if you haven't used your allowance for capital gains this year but will by selling these shares exceed it, what you could do is to sell shares to realise gains up to your allowance of £9,600 and then sell any remainder after April 6 to use your 09/10 allowance. Obviously this will mean you pay any commission for selling shares twice but if you do need to use that technique, it would probably save you a lot more than the additional costs.

scw1

I didnt buy them I was given them by my husband. He did buy them from British Steel though so we can find out how much he paid for them.

So I can cash in £9,600 next year (they are only paid out twice a year June and Dec) and wont be taxed etc.

My husband would need to work out how much he bought them for and work out if he is liable for CGT?

Lokolo

You can pay in £9,600 profit before paying tax on them

Also what do you mean they are paid out in June and December? Are you talking about dividends?

Credit_Check_Services

scw1 wrote: »

I didnt buy them I was given them by my husband. He did buy them from British Steel though so we can find out how much he paid for them.

So I can cash in £9,600 next year (they are only paid out twice a year June and Dec) and wont be taxed etc.

My husband would need to work out how much he bought them for and work out if he is liable for CGT?

You can cash in more than £9600 without paying tax. ....

Work out how much you paid for them, then sell enough to realise a mximum profit of £9,600 .... eg total price sold for = what you paid for them + £9600

G_M

So I can cash in £9,600 next year

No, you can cash in an amount which will result in a profit of £9,600

they are only paid out twice a year June and Dec

If you mean the dividends, this is irrelevant - you can sell any time.

The tax year runs April 5th - to April 5th, so you can EACH make a tax-free profit of £9,600 this month (March) and another tax-free profit of 9600 each after April 5th (assuming you neither of you have other Capital Gains liabilities). That should easily allow you to sell your £14,000 worth of shares each

CLAPTON

Profit is the difference between the price you sell at and the price you paid for them (net of any dealing expenses).

If the shares were given to you by your husband then the buying price is assumed to be the price your husband paid.

So for example if you sell for £25,000 and your husband paid £13,000 then the profit is £12,000.
you have an allownace of 9,600 so you taxed profit is 2,400 which is taxed at 18% i.e. £432