CGT and shares..

Pssst

Just a few questions...

Do ordinary small scale investors regularly get trapped for CGT or are HMRC after bigger fish?

How would HMRC track share sales and potential liabilities for CGT?

How can i shelter existing shareholdings from future CGT?

Are shares bought through company SIP plans liable for CGT?

Dos anyone know of websites with historical share prices?

Thanks all

beingjdc

You don't have to pay capital gains tax on your first £10k or so of profit. If you're making more than £10k a year from share trading, you're not exactly "small scale" in most people's books, I don't think.

tradetime

Do ordinary small scale investors regularly get trapped for CGT or are HMRC after bigger fish?

Don't know, but it's not something I'd want to fall foul of.

How would HMRC track share sales and potential liabilities for CGT?

I've read somewhere, or been told (you'd need to check this) that all purchases and sales are reported, therefore if they took an interest in you for whatever reason they would have access to information about your purchases and sales. Now what would lead them to take an interest in an ordinary person, by which I mean someone who is normally employed paying regular tax through their P.A.Y.E scheme, I couldn't say

How can i shelter existing shareholdings from future CGT?

Not sure on that one, there used to be "Taper relief" which would have helped. Using SIPP's and ISA's may be of help, not really my field.

Dos anyone know of websites with historical share prices?

Yahoo finance has historical prices as shown here for Barclays.

Lokolo

To stop CGT you can "bed and ISA" I think is the term.

From what I recall if you sell your holdings and buy the same amount in 30 days then CGT isn't due. So if you sell £7000. Then buy the same £7000 inside an ISA, that will shelter that £7000 from CGT throughout its lifetime (or until ISAs stop) and you won't be due any CGT when you originally sold.

CLAPTON

CGT is chargeable on realised gains
you can unvest 7,600 in an ISA each year without any tax concerns
you can invest in SIPPs without tax concerns
otherwise you have a personal CGT allowance of 10,100 and then you pay at 18%
if you're married and your OH doesn't use their CGT allowance you can transfer shares to them and so utilise their CGT allowance too.

Lokolo's description of bed and ISA is not really any use unless you don't otherwise use your ISA allowance.

Jonah1

Hi All, I'm new to this BB just finding my way around. I have a question regarding CGT from sharedealing, I purchased shares in June 2008 and sold them in May of this year would the profit be set against this years CGT allowance or last years.

Thanks in advance.
Jonah

JoeCrystal

@Jonah1 This tax year, certainly. There are load of pages about CGT on HM Revenue & Customs' site so might be worth looking into them.

Lokolo

CLAPTON wrote: »

CGT is chargeable on realised gains
you can unvest 7,600 in an ISA each year without any tax concerns
you can invest in SIPPs without tax concerns
otherwise you have a personal CGT allowance of 10,100 and then you pay at 18%
if you're married and your OH doesn't use their CGT allowance you can transfer shares to them and so utilise their CGT allowance too.

Lokolo's description of bed and ISA is not really any use unless you don't otherwise use your ISA allowance.

£7,200 in ISA.....

Jonah1

Thanks for clarifying that Joe, I'll certainly revisit HM Revenues & Customs and get my head round the rules and regs.

CLAPTON

Lokolo wrote: »

£7,200 in ISA.....

thanks, yes indeed the ISA allowance is 7,200

Hatone

Investors like you shouldn't need to worry about CGT - unless you are buying/selling and making a significant sum of money under 12 months, CGT should be no threat.