I have employee shares going back over 20 years - how do I work out CGT?

cazlou71

I have employee shares which I've received every few years over the last 20 years or so either as part of a bonus or SAYE.  They're all in an account with Equiniti, I have no paper certificates.  If I sell some, how do I calculate CGT? 
Let's say I sell 1000 shares, then I know "profit = sale price - purchase price".  My dilemma is, how do I know which shares were sold?  Were they the ones I was given ('purchased') at a value of £2 or £5 or £10 or £30 etc?  Will Equiniti tell me this when I sell them? 
I'm assuming this has a really obvious answer and I'm just being a bit thick!!

bigadaj

How much are you selling, if you stay within the cgt limit and have no other capital gains then it doesn't matter.

kinger101

Don't worry.  You're not thick.  It is actually quite complicated.
First, there's a possibility you'll not have to pay any CGT
https://www.gov.uk/tax-employee-share-schemes/employee-shareholder-shares
If you do, then there is a set order for working out which shares you're selling
https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet

cazlou71

bigadaj said:

How much are you selling, if you stay within the cgt limit and have no other capital gains then it doesn't matter.

I want to move £20K's worth of shares to a stocks and shares ISA so I'd need to sell then do the immediate repurchase so if I was using the really old 'cheap' shares then I could hit the £12K limit.

cazlou71

kinger101 said:

Don't worry.  You're not thick.  It is actually quite complicated.
First, there's a possibility you'll not have to pay any CGT
https://www.gov.uk/tax-employee-share-schemes/employee-shareholder-shares
If you do, then there is a set order for working out which shares you're selling
https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet

Thanks, I've skim read through the links - need to do it properly when I'm more awake!
It looks like I will need to know which shares I received at which date and the value of them on receipt.  Is that correct?  I feel some rummaging of old paperwork coming up!

wmb194

What data is held in Equiniti's system? It might give you a transaction history. You can usually get online access to its 'Shareview' portal.

Dandytf

OP with your workplace sharesave scheme.
Does Loss making shares get Auto sold if and when term expires.
I have joined my own employers sharesave and 1st 3 year term looks to be unlikely to return to profit before March 21.

[Deleted User]

Dandytf said:

OP with your workplace sharesave scheme.
Does Loss making shares get Auto sold if and when term expires.
I have joined my own employers sharesave and 1st 3 year term looks to be unlikely to return to profit before March 21.

Hi,

think you get the option to do nothing, that is, keep the shares, sell the shares or just take your money out.

I know share prices have fallen this last 3 months or so, but you say you're near the end of a three year scheme and the price is still less than your option to buy price?

cazlou71

wmb194 said:

What data is held in Equiniti's system? It might give you a transaction history. You can usually get online access to its 'Shareview' portal.

Hmm, it might have them although we've only been with equiniti for 5 or so years I think.  I need to go and figure this out along with any paper records I have and then take a degree in "understanding the government's financial helpsheets", then it'll all be clear!  It really does feel like they're putting up walls that make paying tax more difficult!

cazlou71

kinger101 said:

Don't worry.  You're not thick.  It is actually quite complicated.
First, there's a possibility you'll not have to pay any CGT
https://www.gov.uk/tax-employee-share-schemes/employee-shareholder-shares
If you do, then there is a set order for working out which shares you're selling
https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet

All of my shares are SIP or SAYE.  It seems my SAYE will be liable for CGT (I didn't put them in my pension or an ISA) but the SIP (retained in a 'plan') will not be.
Hopefully the final question  Does the term "employee shareholder shares" only apply to shares you acquire independently of a company scheme.  Or do my shares that I acquired by SAYE count as "employee shares"? (I'm still an employee)

jennyjj

cazlou71 said:

wmb194 said:

What data is held in Equiniti's system? It might give you a transaction history. You can usually get online access to its 'Shareview' portal.

Hmm, it might have them although we've only been with equiniti for 5 or so years I think.  I need to go and figure this out along with any paper records I have and then take a degree in "understanding the government's financial helpsheets", then it'll all be clear!  It really does feel like they're putting up walls that make paying tax more difficult!

Faced with the similar situation of lots of employee scheme shares acquired over decades of various schemes, and very poor records, I figured on selling them in tranches such that I'd not sell enough in one year to even have to do or report the calculations. Transferred some to spouse too. Almost rid of them now.