Capital Gains Tax + No other income

aspley

I have held shares for just over 3 years. They were bought via my company's Sharesave scheme for £4,500 and they are now worth £18,000.

I understand CGT allowance is around £11,500 but I also get to subtract the £4,500 I paid for them. I assume the CGT will be paid on the remaining £2,000.

I am a stay-at-home parent and have no other income.

Would I still pay CGT or is my income level irrelevant?

cloud_dog

Yes, income level is irrelevant in relation to capital gains.

If you need to sell then split it in to two sales, one before 6 April and one on/after 6 April. You could sell £16k worth this FY without incurring CGT, leaving £2k to sell next FY (or any other combination not exceeding 16k)

aspley

cloud_dog wrote: »

Yes, income level is irrelevant in relation to capital gains.

If you need to sell then split it in to two sales, one before 6 April and one on/after 6 April. You could sell £16k worth this FY without incurring CGT, leaving £2k to sell next FY (or any other combination not exceeding 16k)

Thank you, Cloud_Dog.

I have left myself open here to misleading you. The shares I have are worth £36k and I bought them for £9 so I was already splitting them in two over the two financial years. Sorry about this. I thought I was making it simpler.

cloud_dog

I suppose the question to ask is....how much money do you need now?

Would selling only £16k worth this FY and the same after 5 April, leaving the smallish balance until 6 April 2020 be a problem for you?

cloud_dog

Do you have a partner....could you gift some of the shares to them to utilise their CG allowance?

aspley

cloud_dog wrote: »

Do you have a partner....could you gift some of the shares to them to utilise their CGT?

Good thinking. I will look into how to do that. Thank you.

Tom99

You can sell £15,600 worth this year CGT free to give you a gain of £11,700.
£15,600 - (£15,600/£18,000)*£4,500 = £11,700

Linton

cloud_dog wrote: »

Do you have a partner....could you gift some of the shares to them to utilise their CG allowance?

Good idea but note that in this case "partner" means spouse. Otherwise the gift would be liable for CGT based on the market price at the time of the gift.

aspley

Linton wrote: »

Good idea but note that in this case "partner" means spouse. Otherwise the gift would be liable for CGT based on the market price at the time of the gift.

It is my wife so this should be ok.

Would it matter that I transfer now and she sells one month later, for example?

Also, does anyone know how I transfer them from my name to hers in a cost-effective manner? I have tried googling this but getting lots of expensive results.

cloud_dog

Do you have physical share certs or online?

If online, does your wife hold an account with the same provider? If she does then you should simply be able to request the transfer of X shares from your account to her account (I have done that previously).

aspley

I have the physical certificate but am looking at sending it into x-o so it will be held electronically. So, I guess, she could also create an account and then we transfer from one to the other.

x-o because they seem to only charge £5.95 per dealing which, for the two or three sales, seems to be the cheapest I have found.