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CGT on share

influence
influence Posts: 113 Forumite
in Savings & investments
If I have bought 1000 share for £1 and now the share price reaches £2 and I would like to sell off, say, 500 shares (i.e. £1000)? Will I still need to pay any CGT on the £1000? or it can be consider as just my capital (which I put in at the beginning?

Thanks

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    You pay CGT on the increase in value of your shares.. i.e. the gain.
    so if you bought 1000 shares for £1 each and then sold 500 for say £2.50 then the calculation fo the gain would be
    cost 500 x £1 = 500
    selling 500 x £2.5 = £1,250

    gain = £750
    it is this gain that is taxed however
    then you have a CGT allowance of 9,200 per annum.
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