Tax on shares

daniel80

Hi I have sold most of my portfolio to fund a house move, looking to find a nice bungalow. Have sold the funds but left the money with HL just in case we cant sell and we dont move, then I will reinvest. I have about 11k worth of National grid shares which I will sell after April 6th this will not incur CGT, but will I have to pay any tax at all I am a 20% tax payer. Was waiting until the 6th as I was then going to bed and isa, not really sure if there is any need to do this. Any advice would be appreciated.

Biggles

The key thing, as regards the equities already sold, is how much profit did you make? If over £10,600, then you will pay tax at 18% on the excess gains.

Bed & ISAing the NG. shares won't avoid any tax already due should the gain be over £10,900 (in 2013/14), but will just stop you incurring more if the price rises further.

daniel80

Hi Biggles no I did not go over the CGL on the funds sold, that`s why I have kept a few funds and the shares back until April 6th. So if I sell the shares I assume there will not be any tax due as the profit will be well below the gains limit. The shares were bought through work share save scheme.

gadgetmind

daniel80 wrote: »

The shares were bought through work share save scheme.

Note for the future that SAYE share can be transferred directly into an ISA within 90 days of being exercised, which is nice as you keep your CGT allowance for other things.

daniel80

Yeh I did not realize that at the time,so these shares will be tax free when sold.

daniel80

So can someone please clarify if I sell my NG shares and I have not used my CGT limit for that year and the sale won`t go over the limit no tax will be paid on the sale of the shares.

gadgetmind

If your gain is within your annual allowance of £10.6k this year then there will be no additional tax to pay as the rate for gains in this band is 0%. For a sale of this size you don't even need to report it to HMRC but it's worth keeping all contract notes just in case they ever ask.

In addition to doing SAYE -> ISAs, myself+wife have been selling within our CGT allowances for a few years and have paid no tax. When my wife has occasionally strayed above this, she's paid CGT at 18% but only on what was above £10.6k.

Biggles

daniel80 wrote: »

So can someone please clarify if I sell my NG shares and I have not used my CGT limit for that year and the sale won`t go over the limit no tax will be paid on the sale of the shares.

If you sell your NG. shares on or after Mon 6 Apr, and your total gain for the financial year 2013/14 is not more than £10,900*, there will be no CGT to pay.

* I believe the amount is yet to be confirmed. It was reckoned to be £11,000 but, after the budget, was reckoned to be £10,900.