How much tax will I pay on 20k share profit

poolielad

Can someone please help me, and tell me how much tax and any other deductions I would pay if I cashed my shares in and made a 20k profit?

Many thanks

Lokolo

Capital gains allowance is £10,600
18% for normal tax payers
28% for higher rate tax payers

I am sure you know how to use a calculator.

http://www.hmrc.gov.uk/rates/cgt.htm#3

poolielad

So I earn 35k a year from my job.... not in the high tax bracket..... So would I pay 18% tax on my profits over the allowance???

Thanks

Linton

poolielad wrote: »

So I earn 35k a year from my job.... not in the high tax bracket..... So would I pay 18% tax on my profits over the allowance???

Thanks

Yes. Why not sell half now and half in the next tax year which starts on 6th April, then you wouldnt have to pay any CGT.

gadgetmind

poolielad wrote: »

So I earn 35k a year from my job.... not in the high tax bracket..... So would I pay 18% tax on my profits over the allowance???

Yes, but 28% on anything that took you into HR tax.

Is any of this SAYE or any other company scheme? Is any of it in a company that you're involved in running?

poolielad

gadgetmind wrote: »

Yes, but 28% on anything that took you into HR tax.

Is any of this SAYE or any other company scheme? Is any of it in a company that you're involved in running?

That is income from my employer....

gadgetmind

poolielad wrote: »

That is income from my employer....

Some company share incentive schemes have preferential tax treatment but you'd need to find out the exact name of it so we could tell exactly what it is.

For instance, Share Save Schemes (aka SAYE) allow some shares to be transferred directly into a Stocks and Shares ISA, where you can sell them immediately without any capital gains. If you then sold the rest, you might be within the CGT allowance.