Share Profit and Capital Gains Tax

6022tivo

About 7 years a go I bought £2500 of shares in a company. I have found out that today they are worth about £20,000.

As I understand it, I can cash in 10k before April and £10k after April and I won't have to pay tax or anything? Is this simplistic approach correct?

The only other money I have made (Apart from paye wages) is interest on savings which are taxed at source. Is there any income that could form part of the allowance for CGT?

Sam_J12

I think your plan sounds just fine.

grey_gym_sock

you have a capital gains tax allowance of £11,100 in this tax year. this is separate from any kind of income (e.g. PAYE, interest on savings).

if you sell half your shares for £10,000, and the total cost of the shares was £2,500, then the capital gain is £10,000 minus £1,250 (because that's half the total cost) = £8,750, well under the £11,100 CGT allowance. so selling half is fine, and you could even sell a bit more than half now if you want to.