what will be my tax liability??

me55iah

hi all and be gentle im new lol.

ok so on the advice of a good friend i have bought approx 10k of shares over the last few months in a company.
now lets say i bought all my shares at £1 each and i sell later this year at £10 each.

at what rate do i pay tax on my gain??

also i was advised today by my bank to move some over to a isa share dealing account which i believe the max is £7600

if i did this and again sold at £10 per share later in the year do i still pay the same rate of tax?

Lokolo

Its £7200.

You pay Capital Gains Tax on any profit over £9600.

me55iah

Lokolo wrote: »

Its £7200.

You pay Capital Gains Tax on any profit over £9600.

but at what rate?? and does it change depending on the amount??

also is it the same for a isa share account

Paul_Herring

http://www.hmrc.gov.uk/cgt/shares/calc-cgt-08-09.htm

18% on any gain (end price - start price - fees) over £9,600.

If you move £7,200 of shares into an ISA, (and for simplicity, ignoring fees) you'd have to have bought them for £720, a gain of £6,480 - well below your £9,600 limit per year. You can do the same next (tax) year.

Any gains within the ISA are 'ignored' for CGT.

me55iah

Paul_Herring wrote: »

18% on any gain (end price - start price - fees) over £9,600.

If you move £7,200 of shares into an ISA, (and for simplicity, ignoring fees) you'd have to have bought them for £720, a gain of £6,480 - well below your £9,600 limit per year. You can do the same next (tax) year.

Any gains within the ISA are 'ignored' for CGT.

18% thx for tht.

Myrmidon_J

It's also worth noting that the annual CGT allowance (£9,600, as mentioned in this thread) is reset at the end of the tax year - i.e. a few days from now!

If you have made significant gains, it might be worth "taking profits" in order to avoid future CGT. (And if you have made significant gains, you're bucking a rather epic trend! )

me55iah

Myrmidon_J wrote: »

It's also worth noting that the annual CGT allowance (£9,600, as mentioned in this thread) is reset at the end of the tax year - i.e. a few days from now!

If you have made significant gains, it might be worth "taking profits" in order to avoid future CGT. (And if you have made significant gains, you're bucking a rather epic trend! )

well i had
10270 shares at 48.1p these rose to 75.5p so i took my profit out and sold 3597 shares to put in another company i then bought another 1178 @ 84.5p then another 4679 @ 106p

so i now have 12530 valued @ 98p

and

42451 shares in another company which i bought at 6.5p and are currently at 5.6p a share

i fully expect both companys to show huge profit later this year hence my initial query on the tax situation.

now also i was given 3k and 2k to buy more shares for a friend these were bought at 84.5p so thats another 5890 shares all in my account.

so should i be transfering £9600 worth of shares to a isa share account before the end of the tax year and then buy again in the new tax year another £9600 worth???

is tht right.

Paul_Herring

so should i be transfering £9600 worth of shares to a isa share account before the end of the tax year and then buy again in the new tax year another £9600 worth???

No - the ISA limit is £7,200 - this is not connected to the CGT limit of £9,600

me55iah

ah ok so i can transfer £7200 is tht gross before profit or after on the shares i already own?

Paul_Herring

It's 'after' - what happens is (if you 'bed and ISA' them) is £7,200 worth of shares (at 'today's' price) are sold, raising a CG event (but since any CG will be below £9,600, you won't be liable for any tax,) and then re-bought under the ISA wrapper.

If you're quick, you might be able to get £7,200 done on/before Friday, leaving you with up to another £7,200 to do exactly the same with on/after Monday (the tax year ends on Sunday.)

clairbear_3

As far as I can see youve only made £2800(approx) profit and youve also got some shares losing over 13%!!
A word of warning,before you order the Ferrarri,shares can go down as well as up and I would advise against buying for friends.Get them to open their own account as this could cause you problems in the future