Avoiding capital gains so I can pay my mortgage

tony_b

Im married and pay 40%tax rate, my wife pays the basic rate and between us we have an outstanding mortgage of about £70k with the Oneaccount (which really works well for us)

I have a company Saveshare scheme which matures soon and with the current share price is worth about £80k and I really want to pay off my mortgage with it.

The issue, is this current Saveshare has a total gain of £66k, so I know I can sell the £14k (non gain), and the £11k (forgotton the exact amount) of gain allowance, I know I can also transfer £11k into my wifes name and sell those releasing about £36k this tax year.

I "think" i might also be able to move £12k into an ISA and cash this in the next day tax and gain free?? (not actually sure about this)

but is there any other way I can use this to pay off my mortgage without paying any form of tax?

Is paying my mortgage off the right thing to do? (I dont struggle with it and I have no other debt)

Thanks

Perelandra

There's some really nice sharesave schemes at the moment!

This thread:

https://forums.moneysavingexpert.com/discussion/4764935

covers your options, but your understanding is basically correct.

Cook_County

There is nothing to restrict this to one wife. Make the gift to the current wife; divorce her - re-marry someone else in the same tax year and make a further gift.

tony_b

Lol, now thats sound advice, but if i divorce would i REALLY want to re marry, it might end up costing me more than just paying the CG tax!

Thanks for the advice, that other thread seems to agree with what i thought :-)

nomunnofun

tony_b wrote: »

I "think" i might also be able to move £12k into an ISA and cash this in the next day tax and gain free?? (not actually sure about this)


Thanks

No - this would be regarded as a capital gains disposal - just like any other disposal just as if you had sold the shares, received the cash and put that cash into an ISA.

Sorry!

Perelandra

nomunnofun wrote: »

No - this would be regarded as a capital gains disposal - just like any other disposal just as if you had sold the shares, received the cash and put that cash into an ISA.

Sorry!

Sorry, but that's not always correct either.

If you received the shares from the sharescheme in the last 90 days, you can transfer them directly. There's no disposal, so no capital gains tax implications, and no additional stamp duty. It's the one circumstance where you can transfer directly.

There's a specific process you need to follow, but the OP's understanding is correct (if within the 90 days time window).

Link:

http://www.hmrc.gov.uk/isa/faqs.htm#19

zygurat789

With the stock exchange bubbling away and interest rates so very, vwery low will som,eone please explain to me the logic of doing this.

tony_b

zygurat789 wrote: »

With the stock exchange bubbling away and interest rates so very, vwery low will som,eone please explain to me the logic of doing this.

Its the logic of preffering to pay off my mortgage, agreed that if ther was no debt to pay off then keeping the isa is the way forward.

So, im within 90 days and can therfore use the isa method to move the isa allowance within a day or two.

Can i do this with my wifes ISA allowance too?, ie as well as cashing in her CG allowance also use her ISA allowance within 90 days, that should allow me to move about £55k ish in total, or can i only do that in my name?