Share Saving Scheme

JasonW_2

I dont want to hijack the thread but Im also in a sharesave scheme which ends in Nov. Paying £100/month into itl. So thats £3600 in total I'll have paid in the 3 years and we get the buy she shares at the initial price of 3.14 but theyre now worth 6.97 (trinity mirror) They have been rising fairly steadily for the last 18 months, and hopefully they will reach approx 7.20 ish by november which will clear all my debts and then some I never really thought about tax before. What would be the best way to get access to the money/shares with little or no tax to be paid, but within say 6 months of maturiy - maybe £1k on maturity though? Im a standard tax payer.

edit: Sorry, Ive read the rest of the post properly. This scheme is through the halifax, so would there be any 'self select ISAs' that would work better or wouldnt work at all with this? I really havent a clue about this stuff, just knew it was a good idea at the time to join! Im expecting maybe 8.5k back which is over the 7k limit, so am I right in thinking, I can just leave the 1.5k in the sharesave scheme and then after april, do the same again for the rest to avoid tax? Is it completely tax free?

Cheers, J

dunstonh

any selt select ISA would be ok. Alternatively, you can utilise your CGT allowance over multiple tax years until all the shares are gone.

In your case, if you are expecting £8.5k, you can deduct your original contribution and costs from that which would put you under the CGT allowance for next year.

JasonW_2

Thanks Will look into this nearer the time and get hold of an IFA.

marko

dunstonh wrote: »

It may be possible to transfer 7k worth of shares to wife/husband and ISA those to use both allowances. I would have to check up on that to make sure first though.

Interesting point?

I'm also getting close to the maturing of a SAYE scheme and plan to use the ISA transfer method as a way to minimise tax. I'm really interested in knowing whether I can use my wife's ISA allowance as well? Ignore CGT - this allowance is likely to have been used by the time I get these shares!

If we can, then this would in effect mean I would buy the shares, transfer £7000 worth to my wife and then get her to invest them in a MAXI Share ISA – all within 90 days. Wait the cancellation rights period and then get her to sell them?

Basically the question is - does anyone know if this is allowed or possible and therefore will it avoid the any tax we would have to pay normally?

The reason I ask now - is the 2007/2008 tax year is about to start and we don't want her to take out an ISA if we can use it later in the year to do this?

Any advice is much appreciated.

bristolleedsfan

ketherin wrote: »

My wife works for a well know Building Society, 5 years ago she was offered a company share scheme whereby she could save upto £250 per month for 5 years and at the end purchase the shares at the price given at the beginning.

The share price she was given was £3.80 and the current price is about £8.70, and she paided in the max £250 so obviously things have gone very well.

to avoid confusions it should be noted that alliance and leicester plc are an "ex building society" some people might have read it and thought that the company share scheme was a benefit of mutuality

perhaps im missing something my reading indicates lowest alliance and leicester plc share price has been ( year low) is 9.95 currently is 11.34 with "year high" being 12.48

Tirian

Well that would make the maths work out a bit better:

£250/month for 5 years = £15000

£15000 of shares costing £3.80 = c. 3950 shares

3950 shares at £8.70 = c. £34,000

However 3950 shares at £11.34 = £45,000 .. a bit closer to the £50k figure that has been mentioned!


Also, can't the tax be avoided by transferring the shares into a SIPP? Obviously if you want to use the cash to pay off a mortgage then that's not going to work but if you just want to get the gain without the tax hit then wouldn't this be a solution?