We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Tax on SIP shares during company takeover
moneysavingrock
Posts: 20 Forumite
Looking for some advice on the treatment of cash gained from shares during a company takeover. I have money invested in a company SIP and I will be due roughly £6000 from the cash element of my shares being bought during a company takeover. All the official documentation states that this will not be subject to income tax, however from reading the HMRC document https://www.gov.uk/guidance/capital-gains-tax-share-reorganisation-takeover-or-merger
it looks like I would break the £3000 barrier and therefore would be liable for Capital Gains Tax.
I'm looking for some advice on this, would this be covered under my £11000 personal allowance for CGT or is this a separate issue. If I am liable for CGT on the cash element I would probably elect to take the cash as shares instead as this is an option, however they are then still within the SIP so I can't access them until usual time limits of the plan.
it looks like I would break the £3000 barrier and therefore would be liable for Capital Gains Tax.
I'm looking for some advice on this, would this be covered under my £11000 personal allowance for CGT or is this a separate issue. If I am liable for CGT on the cash element I would probably elect to take the cash as shares instead as this is an option, however they are then still within the SIP so I can't access them until usual time limits of the plan.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards