Best way to use my company shares

bluescorpio

Hi all, new user and first time posting on the forum! I am really hoping to find some useful advice on my question.

I was involved in a sharesave scheme in my firm with the offer of putting money in each month for 3 years. After the 3 years had been completed there were a number of options on what to do with the money invested in the scheme. There is an option to buy shares in the company with the money invested at a "special fixed rate" which is below the current market rate of the shares. I took up this option and now hold a share certificate for a number of shares and since then the share price has increased further.

What I would like to find out is if there is a way to cut down on the tax that would be due if I exercised these shares at some point? Any advice would be most appreciated.

P

Daniel54

bluescorpio wrote: »

Hi all, new user and first time posting on the forum! I am really hoping to find some useful advice on my question.

I was involved in a sharesave scheme in my firm with the offer of putting money in each month for 3 years. After the 3 years had been completed there were a number of options on what to do with the money invested in the scheme. There is an option to buy shares in the company with the money invested at a "special fixed rate" which is below the current market rate of the shares. I took up this option and now hold a share certificate for a number of shares and since then the share price has increased further.

What I would like to find out is if there is a way to cut down on the tax that would be due if I exercised these shares at some point? Any advice would be most appreciated.

P

Capital Gains Tax is potentially due when you sell shares.The capital gain is the difference between the price you paid for the shares and the price you sell them at.

What is your current unrealised gain ?

However you have an annual tax free CGT allowance of £10,900 in 2013/14 and £11,000 in 2014/15 - giving a total of £21,900 across the two tax years before any CGT is payable

Vortigern

These recent threads may help:

https://forums.moneysavingexpert.com/discussion/4861594

https://forums.moneysavingexpert.com/discussion/4861174

bluescorpio

Hi Daniel54,

At current prices the gain is near to £12k but other added complication is I also have share options which were set at a fixed price. If these were sold now they would make me gain of another £11k.

somethingcorporate

You get a new CGT allowance every tax year so unless you need the money immediately spread your divesting of the shares over the next few years.

Your partner (if you have one) also has an allowance.

GlasgowExpat

Providing it's less than 90 days you can transfer the shares into an ISA

atush

First of all, do you have a spouse, and have you taken out a S&S isa for this year?

You can transfer shares to your spouse (or the options once realised) to a spouse tax free. then they can be transferred into a S&S isa or pension via bed and Isa/pension. This could take your current and future tax to nil and actually be ahead if pension is used.

Or you can split them between ISA and Pension and be tax neutral (or up+) for yourself as they should be under your ISA allowance and pension allowance.

If you prefer them in ISA (withouth the great pension uplift) then put half in before/after April5th.