WAY Fund

Rosanne58

Aha......thank you for the explanation.
I thought the CGT was payable on shares I sell to the value of £11,300.
But now I understand so having only recently received these I can sell many more that I previously thought!!!!


Great advice, thanks

jimjames

Rosanne58 wrote: »

Aha......thank you for the explanation.
I thought the CGT was payable on shares I sell to the value of £11,300.
But now I understand so having only recently received these I can sell many more that I previously thought!!!!

It is an allowance as per the explanation in post #2. Hence the previous comments that you may not need to pay any CGT at all if you only just inherited them. Bear in mind that the value will fluctuate so you need to be aware that there is a risk the amount will be different at the point you want to sell them

MallyGirl

Rosanne58 wrote: »

Aha......thank you for the explanation.
I thought the CGT was payable on shares I sell to the value of £11,300.
But now I understand so having only recently received these I can sell many more that I previously thought!!!!


Great advice, thanks

As long as you haven't inherited £100k worth of shares that have then jumped 11.5% in value since probate then you are OK. Only you know the real numbers - just trying to provide context

NotSkint

Note that even if CGT isn't payable, if your disposal of assets is greater than 4 x the CGT allowance then you are required to notify HMRC; currently that would equate to a disposal greater than £45,200 according to gov.uk.
So depending upon the value, you may still want to transfer some to your husband to avoid this (not that it is an issue, but some see it as such!)

dales1

NotSkint - it is true that the HMRC website does indeed advise this.

But bowlhead99 is certain that the underlying tax law only requires declarations (of disposals over 4 x CGT allce) if you are filling out a tax return or if you have CGT to declare, and not otherwise.

So if you have no CGT liability to declare and you don't have to complete a tax return, you don't have to tell them about your disposals. Even if they are for a large amount.

And [FONT=&quot]bowlhead99 is rarely wrong (or so he says).
There's a thread on this board from last Autumn about this.

Dales.[/FONT]

NotSkint

dales1 wrote: »

NotSkint - it is true that the HMRC website does indeed advise this.

But bowlhead99 is certain that the underlying tax law only requires declarations (of disposals over 4 x CGT allce) if you are filling out a tax return or if you have CGT to declare, and not otherwise.

So if you have no CGT liability to declare and you don't have to complete a tax return, you don't have to tell them about your disposals. Even if they are for a large amount.

And [FONT=&quot]bowlhead99 is rarely wrong (or so he says).
There's a thread on this board from last Autumn about this.

Dales.[/FONT]

Thanks for highlighting this. Have done a bit of digging and it does appear to be as you say.

Keep_pedalling

NotSkint wrote: »

Note that even if CGT isn't payable, if your disposal of assets is greater than 4 x the CGT allowance then you are required to notify HMRC; currently that would equate to a disposal greater than £45,200 according to gov.uk.
So depending upon the value, you may still want to transfer some to your husband to avoid this (not that it is an issue, but some see it as such!)

You only need to do this if you already do a tax return.

Keep_pedalling

MallyGirl wrote: »

CGT is not on the selling price of your shares - it is on the profit you have made on those shares.
In a normal share sale you deduct what you paid from the selling price and if that comes to more than £11300 gain then you have to pay tax on the excess.

An inheritance of shares is different. The 'profit' is the difference between the price at probate and the price when you sell. Is that difference going to be more than £11300? If not then no CGT to pay and no need to mess about with transfers

Gains (or losses) are calculated from the value of the shares on the date of death not probate, although that should be the value shown on the probate documents.