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How much tax?
Plasticballs
Posts: 7 Forumite
I have a friend who bought shares for £16k which are now worth £101K. He is self employed and wants to know if he sold them how much would he actually get after paying tax and average selling fees?
0
Comments
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The gain is 85k = 101k - 16k
Personal CGT allowance is £11,100, so £74k is chargeable.
£74k at 28% is £21k, if he is a higher rate tax payer, and
18% if he is not a higher rate tax payer.
So £21k is the upper limit of what he will pay.
The simplest thing is to sell over several years, using the CGT allowance every year.
Wish he did it inside an ISA, I bet.0 -
Also if your friend has a wife he can gift shares to her and she can sell them to use her capital gains allowance.
Transaction fees are going to be trivial in comparison to CGT if he sells them all in one tax year.0
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