capital gain

lee_w

good afternoon

after a bit of help with how much tax i'm likely to pay

over 3 years i have saved in a saye scheme in work, £9000 over 3 years

these are now worth £30000, so a net 'profit' of £21000

taking in to account tax free allowence of £10000 that leaves £11000

i will also be selling some shares i purchased for £5000 for £1000, so that £11000 will be a £7000 gain

are my calculations correct and am i right in thinking i will have to pay 18% tax on the £7000

i can't spread over 2 tax years as i need the money in one lump sum

any advice or help would be great

pjclar02

Hello there

Yes - your figures are broadly correct. You will pay 18% if you are a basic rate taxpayer or 28% if a higher rate taxpayer (bear in mind the share gain may take you into higher rate tax when you are not normally).

If you transfer £7,000 of the shares from the scheme into an ISA, and then sell them, then these will not be subject to capital gains tax.

Thus you should get the lot tax free.

lee_w

thanks for the quick response, it would take me into the 28% tax so the route of a shares isa could be a possibility, i already hold a share dealing account with barclays so will look into a shares isa account with them. paying no tax would be a result as its deposit money for my first house

thanks again

pjclar02

Great - you may need to shop around to find a share dealing ISA that will accept the shares you have, but hopefuly Barclays will do it.

lee_w

thanks

i also sold this year some shares at a £4000 loss, can this be carried over to next years to offset agains the above amount leaving £3000 gain or is it not that simple

xylophone

http://www.hmrc.gov.uk/cgt/shares/

pjclar02

xylophone wrote: »

http://www.hmrc.gov.uk/cgt/shares/

I couldn't find the answer via that link...but maybe I didn't look hard enough!

Unfortuntely, you have to offset the current year loss against your current year gain, which does mean that you will waste some of your annual exemption and you will therefore waste the losses.

If however you generated the losses in 2010/11, then if you can hold off selling your Sharesave shares until 2011/12, then you do not need to offset and the losses can roll forward for future use and will therefore not be wasted.