CGT avoidance on selling shares from SAYE 3 Year Sharescheme

eviekins

Also, we're worried the price will drop, so wondering whether it's actually worth just paying the £800 CGT rather than waiting for accounts to open as this would still leave us with more money than if the price dropped by say £0.10p and we think it will drop by more than that!
Any thoughts on this?

eviekins

Edi81 wrote: »

Halifax share dealing accept them but not sure what their fees are like compared to others. The important part is the Letter of Appropriation which proves the shares come from a HMRC approved scheme and be placed in the ISA.

Do you have an online account for the shares at the moment? my employer uses Equiniti to administer their scheme and you can get the letter online.

We can see the shares online yes, on the link share dealing website.
They sent the certificate in the post though.
I havent seen the Letter of Appropriation on there, but I'll have another look.
Thanks!

bowlhead99

eviekins wrote: »

Also, does anyone know how it works when you sell, are you guaranteed the share price showing at that moment in time or can it change?

How about selling 'out of market hours' like on the weekend or before they open or after they close. Are you guaranteed the price its showing when the market closed or will it be an unknown price from when the market reopens?

If the market is open you should be guaranteed the share price which you accept when agreeing to sell.

If the market is closed, then no you are not going to be able to go back in time and get the price that people were getting before the market last closed. You will be able to get the price available when the market is open again and your order gets to the front of the queue. If there was negative news for the company, or the economy generally, before that time, the price may be different. If positive news for the company, economy or general market sentiment, it would be different in a good way rather than a bad way.

eviekins wrote: »

Also, we're worried the price will drop, so wondering whether it's actually worth just paying the £800 CGT rather than waiting for accounts to open as this would still leave us with more money than if the price dropped by say £0.10p and we think it will drop by more than that!
Any thoughts on this?

Share prices can move several percent in a day, and it will take time to open an ISA, move shares into it, and sell inside the ISA. If you both you think the share price will drop for some reason and actually have some sound basis for thinking that (rather than simply paranoia) it would make sense to sell ASAP.

Even if your fear is unfounded, you will be 'kicking yourselves' if the price falls substantially while you take time to do things 'right' to save the tax; and such things can be unhealthy for a relationship especially if one person said take the money and the other thinks save the tax. He should do what he thinks is best, armed with the facts. Then he has only himself to blame, rather than some interfering partner

If we imagine the shares are worth about £34k this morning. He could sell 70-75% of them right now with no tax consequences (i.e. creating profits of <£12000 on the original 12.5-13.5k cost of that portion of the shares, which would be within his annual CGT exemption). This would leave him with £8-10k of shares left.

If he waited to get those into an ISA to achieve a zero tax bill, he could afford for the share price to drop about 10% before he was made £800 worse off by that decision, and even if he was made £800 worse off by the delay, it is no worse than being made £800 worse off by needing to pay tax. If he expects the share price to crash 20% in the next few weeks, then sure, go ahead and cash them all in and pay the tax.