How many shares can I sell without incurring capital gains tax?

elwy

Ah the significance of the word 'gains' was lost on me as I didn't understand how to calculate it until you showed your working out with figures. That was an enormous help!

bowlhead99 wrote: »

So, assuming the current share price stays exactly the same, with a value of £90 for the initial £15 of cost, then you could sell £13200 this week and make exactly £11000 of profit and pay no tax. Next week is a new tax year so you can sell another £13200 and make another £11000 of profit and still not pay any tax if you make no more gains in the 2015/16 tax year.

Just to clarify, is the CGT allowance still £11,000 next week? Talexuser mentioned a £11,100 allowance for next year.

bowlhead99

elwy wrote: »

Just to clarify, is the CGT allowance still £11,000 next week? Talexuser mentioned a £11,100 allowance for next year.

I haven't bothered to look it up, it increases from time to time, you could look it up if you wanted to be sure. As your original post said "assuming that the CGT allowance remains at £11,000 each year" there was little point me changing the numbers to confuse you further

elwy

Ok thanks for clarifying!
All the help from everyone much appreciated.

Eco_Miser

While it's unlikely to make a significant difference, remember to deduct the cost of selling from your gains before calculating any CGT due.

Biggles

elwy wrote: »

Just to clarify, is the CGT allowance still £11,000 next week? Talexuser mentioned a £11,100 allowance for next year.

Correct, it goes up by a massive £100 (unless it changed in the budget but I don't think it did).

CLAPTON

makes sense to sell sufficient shares immediately to cover your cgt allowance of 11,000 for this tax year (sell before 5th april which effectively mean you have only today and thursday as friday is a bank holiday)

and then transfer sufficient shares to OH for him to use his 2015-16 cgt allowance of 11,100 and sell next week

elwy

Eco_Miser wrote: »

While it's unlikely to make a significant difference, remember to deduct the cost of selling from your gains before calculating any CGT due.

Unfortunately I'm going to get stung by high commission charges on the default stockbroker service which we never switched out of. I'll see about moving the shares somewhere else before I deal next year.

elwy

Does the two working days for BACS transfer make a difference on which year the gains will be considered for tax purposes?

jimjames

elwy wrote: »

Does the two working days for BACS transfer make a difference on which year the gains will be considered for tax purposes?

No.

It's based on the sale date.

elwy

The trade date is 1st April but the settlement date is 7th April... I'm hoping it's the trade date that counts?


I hold a certificate for the shares if that makes any difference so I guess I'll have to send it off.