BT Shares

maisie1234

Hello,

I wonder if someone can literally spell out what I need to do here please.

I have a BT Sharesave and the shares including my contributions will be worth about £90k. I would like to sell the maximum shares every year (for school fees purposes!) and I understand that I can put some in my husbands name.

I understand that I have an allowance in a Stocks and Shares ISA of cira £11k and CGT of the same sort of amount. Can I sell say £22k and can my husband sell £22k every tax year without having to pay any tax.

How much can we sell every year. Do I just transfer £22K worth of shares every year to my husband?

What about the rest of the shares that are left. Where should those reside? What about my contributions over the 5 years (£13500).

We are happy to spread selling them over a number of years but dont want to pay any tax....

Ifts

maisie1234 wrote: »

I understand that I have an allowance in a Stocks and Shares ISA of cira £11k and CGT of the same sort of amount. Can I sell say £22k and can my husband sell £22k every tax year without having to pay any tax.

My understanding is (you may want to double check though!) within so many days of the Sharesave maturing you are allowed to transfer an amount equal to your full Isa allowance (then sell them within the Isa and gains will be tax free) and also you can sell up to your CGT allowance each year outside of an Isa.

You can transfer some shares into your husbands name each year and make use of their annual CGT allowance, but unlike you I don't think your husband can use their Isa allowance to sell another load tax free.

You can do this over a number of years if need be to dispose of the shares tax free.

Hope that makes some sort of sense, with a little luck someone who's good with words can come along and explain it better than I can!

edit: Just found the thread I was looking for that asks a similar question to yours:
Maximising CGT allowance -https://forums.moneysavingexpert.com/discussion/4894199

CLAPTON

you can transfer up to the S&S ISA allowance tax free within 90 days
your husband can't do this however

you can sell shares such that the PROFIT is 10,900 (current cgt allowance )


you can transfer to your husbands shares without tax: he can sell shares with a profit of 10,900 without tax


the profit is the selling price less the purchase price

so work out the cost of each share and then go from there

Stochasticity

You can also transfer shares into a pension tax-free within 90 days of exercising the option (and receive tax relief on it as a contribution), and then sell within the pension tax-free.

As you have 90 days to transfer shares into an ISA or pension, and the end of the tax year is within 90 days, you can do this across 2 tax years.

Vortigern

Stochasticity wrote: »

As you have 90 days to transfer shares into an ISA or pension, and the end of the tax year is within 90 days, you can do this across 2 tax years.

I don't think the share option can be exercised till August. That would rule out using two tax years for ISA/pension transfer.

maisie1234

The Sharesave doesnt mature until August 2014. I think I understand re transferring to my husband.

But what about the remaining shares left after he has sold his limit and I have sold mine for that tax year.

Where do the remaining shares reside? In the next tax year do I just mirror what I did the previous year?

We dont want to transfer to a pension. We want to use the whole of the £90k for school fees but dont have an issue with spreading out over a number of years?

grey_gym_sock

you can repeat transferring some shares to your husband, and each selling enough to use your CGT allowance, in every tax year.

Gadfium

The remaining shares will be held by Equiniti in your name. You can hold them there, sell them or transfer them.
As far as i know, you can only transfer them (up to the S&S limit) within 90 days of exercising the option, so you cannot transfer £11k into next years ISA.
You will be getting contacted by the Sharesave team...there was a recent briefing detailing the contact that you will be getting over the next couple of months. Have a look on the internal Sharesave page for more info.

madeinireland_2

I believe you have 6 months to exercise your option so you can delay exercising you option till say January.

At that point you can transfer some to other half, sell some up to CGT limit for each of you and then utilising the ability to transfer to an ISA within 90 days transfer some this financial year (next jan I mean) and another bite in April

I think this enables you to dispose of about £66k worth in a short space of time

2 times CGT limit / year = £44k

Plus 2 times ISA limit = £22k

madeinireland_2

Of course this would be more as the original price is 61p per share so my example assumes full capital gains on the share price and would be worse case.

I'm not sure how pooling works so I always assume worse case...and anyway you might not want to sell them all if the share price continues to go north