capital gains tax on shares.

trophy_hunter

Hi, I'm in a save as you earn share scheme and my profit will be around £20,000 when it matures in January is there any way of avoiding capital gains tax on this other than selling some shares before April and some after when the new tax year begins, as i read somewhere that if i buy and sell straight away i would not be taxed. any advice would be great,thanks.

ziknik

You can make around £9.2k of capital gains per year before you have to pay any tax. If you sell half this year and half next tax year, you will only pay tax on £800 per year.

Ask your company, they should work all of it out for you

gt94sss2

trophy_hunter wrote: »

Hi, I'm in a save as you earn share scheme and my profit will be around £20,000 when it matures in January is there any way of avoiding capital gains tax on this other than selling some shares before April and some after when the new tax year begins, as i read somewhere that if i buy and sell straight away i would not be taxed. any advice would be great,thanks.

As has been said, you can currently make up to £9,200 of Capital gains per tax year, tax free. Also, if you are married your partner can do the same.

In addition, you can transfer some of your shares directly into a Shares ISA up to the appropiate value - £7,000 this year, £7,200 from 6 April (less if you have cash ISAs) - without selling them first. This means when you do sell them, this sum will be free of tax as well. You do need to do this within 90 days of getting the shares but if that period covers 5/6 April you can make use of 2 years ISA allowance)..

Regards
Sunil

trophy_hunter

thanks for your post very helpful, regards, trophy hunter.

sweep1953

I have approx 2000 shares @ 15£ per share maturing next may
can i tansfer say half into my wifes name so we can both use our ctg allowance

Aegis

As far as I'm aware that's a perfectly legitimate way to avoid additional capital gains tax. You could also transfer the entire excess to the lower-earning partner to keep the outgoing tax payments as low as possible by remaining in the basic level rather than the higher level.

Of course, if the proposed new CGT laws are put into effect between now and then, you can ignore the second half of what I just said because it will make no difference!