Capital Gains Tax Question

tomm0

Morning all,

OK I have some shares that have gone up in value meaning I am needing to find out how much tax to pay on Capital Gains. Im confused about the tax free allowance, hopefully someone out there can help.

As I understand it...

- Your tax free allowance per year is £11,000
- Your ISA allowance per year is £15,000

Say if you have shares that have gone up so you see a capital gain of the value of £100,000. Can you cash in £26,000 worth of shares in March this year (tax free allowance plus ISA allowance) out for the 2014/2015 tax year, and then another £26,000 in May for the 2015/2016 tax year?

Meaning you then pay capital gains on the remaining £48,000 for 2015/2016?

lpgm

You're mixing up lots of stuff here. Are the shares inside an ISA or outside? You haven't got two allowances to combine.

But first things first. Do you actually need or want to sell these shares? You don't pay capital gains tax on anything until you've actually sold it.

tomm0

Thanks for the quick reply.

OK so its a save as you earn scheme. I will transfer the share certificate into the ISA, so they will be inside the ISA.

I want to sell the shares as I am buying a house and have made a significant gain and plan to sell in two blocks - one this financial year and one next.

I am a first time buyer so am going to use my gain on a house deposit.

lpgm

I'm not an expert on SAYE. As I understand it, you can put your shares into an ISA, but only up to the usual allowance. Then you'll have to deal with CGT on the rest, when you sell. As you say, you can take advantage of one tax year ending and another starting soon.

Vortigern

https://forums.moneysavingexpert.com/discussion/5148327

Take a look at the recent thread linked above.
You can sell shares to realise a gain of £11000 before 6th April
You can give the same number of shares to your spouse, who can then realise the same gain
You can put £15000 worth of shares in an ISA*, then sell immediately without making a chargeable gain.
If you've any shares left you can sell some more after 6th April

*There is a limited time in which you can transfer sharesave shares to an ISA without having to sell and repurchase. Your scheme organiser should have told you about this.

Gadfium

Sorry for the thread resurrection, but I've just found this:
https://www.gov.uk/tax-employee-share-schemes/employee-shareholder-shares

If I read this correctly, then as long as the shares were worth more than £2000 when you bought them then you can sell up to £50,000 exempt of CGT.

Is that interpretation correct?