Transferring sharesave shares into an ISA

bowlhead99

eskbanker wrote: »

.

Given your intention to try to align an imminent sale with the CGT threshold, it seems odd that you'd have sold shares in 2015 that breached that threshold by a relatively small margin, what drove your calculation of how many to sell back then?

As you can see, the proceeds of what was sold was £15k, which would be the amount of proceeds that could fit in to the ISA limit at the time

flopsy1973 wrote:

... it was my mistake not to pay that tax back then. So how would hmrc know this would be due for the next year ?

They know based on the info you give them or what info someone gives them.

Brokers don't auto report capital gains because they can't know whether you have made overall profits or losses across all your assets anyway and they don't always know how much you paid for something that you didn't buy through them. However, automatic reporting of gross proceeds is something that they may do in future (as they do for the accounts of their foreign accounts to support automatic international exchange of information).

Or occasionally someone who is jealous that you have done well on the scheme or just generally doesn't like you, might ring them up just for fun and give them a made-up story that you have been boasting at work or down the pub about how much profit you made without paying tax and how you don't plan on telling HMRC. If they have nothing better to do, they may follow up such tips. So when you are reporting taxes in the future they may choose to audit your filing history (or lack of) if they suspect you to be a bad egg.

Generally penalties for getting caught are worse than for saying you forgot to pay something a few years ago and have only just found out that you needed to declare your gains and tax due for 2014/15. So as a general rule, the "but how would they know" question that you've mentioned in a couple of posts, is not a good one to ask. Best to just assume they know or will find out and it would be embarrassing to be caught.

eskbanker

bowlhead99 wrote: »

they may choose to audit your filling history (or lack of)

Don't tell me that HMRC have access to dental records too?

flopsy1973

so now i have sold some of the shares in last tax year i will need to work out the new average price of the balance taking into account the no of shares i sold ?

londoninvestor

flopsy1973 wrote: »

so now i have sold some of the shares in last tax year i will need to work out the new average price of the balance taking into account the no of shares i sold ?

Selling doesn't change the average price.

Let's say you originally had 10,000 shares at a cost basis of £30,000 - so an average price of £3 per share.

You sell 2,000 shares for £7 each - the base cost for your sale is 2,000 * 3 = £6,000 (and so your gain is £8,000 minus selling fees).

You now have 8,000 shares (10,000 - 2,000) at a cost basis of £24,000 (£30,000 - £6,000). So your average cost price is still £3.

(I've made these numbers up, not based them on the numbers you quoted - it's just for the sake of illustrating the logic.)

londoninvestor

bowlhead99 wrote: »

Generally penalties for getting caught are worse than for saying you forgot to pay something a few years ago and have only just found out that you needed to declare your gains and tax due for 2014/15.

Exactly, we're talking about a gain of roughly £1,000 above the annual allowance - so about £200 of tax. Even looked at purely from the standpoint of self-interest, much better to self-report that to HMRC than take the risk.

flopsy1973

so would i be fined if i reported this late tax now or are they just going to charge me tax due?
are they likely to look at that from years back ?

eskbanker

See https://taxaid.org.uk/guides/taxpayers/undeclared-income/step-3-higher-level-of-undeclared-income and https://www.gov.uk/undeclared-income

PillagingViking

I did this last year. Transferred to a Stock and shares ISA with HL within the 90 days so no "bed and ISA" i.e. selling the share and buying back inside the ISA. HL were really very helpful, I called them and they told me exactly which forms i needed and how to fill them in. It's important you make it clear on the form that it's a SAYE transfer and you need a Letter of Appropriation from the SAYE provider which is proof that the shares are from a SAYE and within the 90 days. Really quite straight forward, if i remember rightly, HL open a different account for you, a Fund and Share account where the shares end up first and then they transfer them into the ISA, that's merely a formality and one of the forms you fill ou anyway. Call them, very helpful.

volc25

Hi Guys,


I am in a similar boat.



I have a share save scheme that will mature in July. My original investment over the course of 3 years was 3598, when I come to sell I am expecting to receive over 12.5k.


Capital Gains is only the difference between the amount put in and the amount taken out isnt it.

So my capital gains will be roughly £8900. So I dont need to pay any capital gains tax on it?


Also will this affect my total income for the year? Does this capital gain count towards my income?


Do I still need to declare this too? If so how do I do so?

Nazgul

For a SAYE transfer of certificated shares matured in the last 90 days into one’s ISA (i.e. NOT ‘bed&breakfast’ way), in case one has multiple S&S ISAs, are you limited into transferring them into the ISA you have subscribed in the last year or can it be any?

I cant’t seem to find an answer to this and my ISA provider where I want to transfer my shares cannot provide me advice.

I do know for a fact transfers between ISAs can dont count as typical subscriptions. Is this the case with SAYE transfers into ISA as well?

Would be grateful if someone knows and can provide an answer. Thanks