Work sharesave VS CGT

geordie_ben

bowlhead99 wrote: »

You're a star.

Now I just have to decide what to do with the excess after my ISA allowance is full, as they're currently worth more than the allowance

chris_m

geordie_ben wrote: »

You're a star.

Now I just have to decide what to do with the excess after my ISA allowance is full, as they're currently worth more than the allowance

If you have a spouse/civil partner you can also transfer some to them, to make use of their CGT allowance as well. I don't think that you can transfer the shares into his/her ISA, though, only a straight transfer.
That may be one of the options your sharesave administrator offers when seeking your maturity instructions, it is with the schemes in my company.

geordie_ben

Cheers Chris

You know how you can have £15,400, what happens if i fill that and then the shares value increases? and say the shares are then worth £20k? Does it all just stay in the ISA?

AndyT678

Once they're in; they're in and whatever you gain after that is tax free.

Similarly if they tank and become worth £5,000 you've still used your entire allowance and you don't get to add more money

chris_m

geordie_ben wrote: »

Cheers Chris

You know how you can have £15,400, what happens if i fill that and then the shares value increases? and say the shares are then worth £20k? Does it all just stay in the ISA?

As Andy said, "Once they're in, they're in".
You can then do what you like with them - if they go up to £200K it's still tax free :j
The same, BTW, applies to any dividends on them, which would usually be paid into the ISA where the shares are held - no need to worry about that taking your dividend income into a taxable status either.

[Deleted User]

geordie_ben wrote: »

I'm a bit confused with the CGT rules when it comes to my sharesave at work

I've agreed to buy the shares at one price, the price now is much higher, almost triple the value :T:T:T

They'll be worth over £11,000 - will I need to pay CGT at that point or does it just come into play when I sell them?

I've started reading up on S&S ISAs but I'm not sure I'll benefit with being a normal tax payer

Can I ask what company you work for?

geordie_ben

Yeah I'm going to be taking any dividends as shares - makes the most sense. Just gotta hope for some special dividends as well

gadgetmind

chris_m wrote: »

I don't think that you can transfer the shares into his/her ISA, though, only a straight transfer.

You're right, you can't use a spouse's ISA. I tried and HL sent me a two page letter explaining why not, and attached the share certificate to it.

Worth a go!

geordie_ben

gadgetmind wrote: »

You're right, you can't use a spouse's ISA. I tried and HL sent me a two page letter explaining why not, and attached the share certificate to it.

Worth a go!

That's a shame, I wanted to pop some in my daughters name. I can sort that out afterwards I guess

AndyT678

geordie_ben wrote: »

That's a shame, I wanted to pop some in my daughters name. I can sort that out afterwards I guess

Probably not an issue but only transfers between spouses are CGT exempt. Giving to your daughter would generate a potentially taxable gain for you.