Selling shares / Capitol gains tax / gifting shares to wife / who why when where

jules4485

Hi all.

 

I am soon to get my hands on some money I invested in my companies SAYE share scheme. The scheme has done very well and the date is coming up to cash in or to let the shares run for more time. I need some advice on how I can get my hands on as much as the money as I can without giving it all to the tax man. I am a complete novice in understanding how much i will be charged in tax when I come to sell.

 

So the company agreed to sell us the shares at £1.93 and currently they are worth £7.26.

I have worked out (myself on my understanding so maybe not correct, please advise) that I will not pay tax on the £1.93 because I presume I would have paid the income tax on this already and from my understanding I am not taxed on the initial investment amount. Please correct me again if I’m wrong.

 

So with me being able to claim up to £12,300 capital gains tax free can you please advise that if my calculation below is correct,

(All calculations are very close approximates as too many decimal places to work out).

 

If i was to cash in 2309 shares at today’s price that would give me £16,763 of which £4,464 (CGT free?) would be my investment and £12,298 would be profit (Just under my CGT allowance).

 

Am I correct in this way of thinking or am I totally wrong, any advice is greatly received. I would also be looking at "gifting an amount to my wife to use her capital gains allowance. How would this work for her as it wouldn’t be her who made the initial investment?

 

Also can anybody advise on who I could sell the shares through for the best rates? Is there any platforms I can load my share certificates on to and sell instantly when I am happy with a price?

Any advise on any of the above would be great. 

Thanks

p00hsticks

Have you used any of your S&S ISA allowance this year ? If not, providing that the company is one listed on a major stock exchange I understand that you can transfer up to £20,000 of the SAYE shares straight int oan ISA without paying any CGT and  once there any further gain will also be free of CGT

https://www.charles-stanley.co.uk/insights/commentary/transferring-saye-shares-isa

(NB - this is just a random link google pulled up - I've no personal experience of the particular comany in question)

jimjames

We can't tell if your calculation is correct without knowing the actual numbers but it certainly makes sense. You can do that every year so if you sell enough now to make £12300 profit you can do the same again after April. Unless you sell them all in one go and are happy to sell over a period of time then you can avoid paying tax on them. That does assume CGT rules stay the same.

p00hsticks

jules4485 said:

Also can anybody advise on who I could sell the shares through for the best rates? Is there any platforms I can load my share certificates on to and sell instantly when I am happy with a price?

Any advise on any of the above would be great. 

Thanks

Presumably we are talking about a listed comany here ? If so the general recommendation on this board is for x-o - you'd need to set up an account first and then send them the certificates to convert to the electronic CREST system, which apparently is free of charge - they then charge £5.95 per sale.

lozzy1965

Just to be totally clear:  
The Capital Gains Tax is only payable on the difference (profit) between the buy price and sell price.
eg. BUY @ £2000 SELL @ £14300 = £12300 profit, ie. no CGT to pay
It is due each financial year, so another option for you is to sell some before 6th April and more after, thereby effectively doubling you CGT allowance.

eskbanker

lozzy1965 said:

Just to be totally clear:  
The Capital Gains Tax is only payable on the difference (profit) between the buy price and sell price.
eg. BUY @ £2000 SELL @ £14300 = £12300 profit, ie. no CGT to pay
It is due each financial year, so another option for you is to sell some before 6th April and more after, thereby effectively doubling you CGT allowance.

Just to be even clearer (hopefully), it isn't 'due each financial year' as such - it's only due in any financial year in which you make qualifying disposals above the annual CGT allowance, which resets each year.

Thrugelmir

eskbanker said:

lozzy1965 said:

Just to be totally clear:  
The Capital Gains Tax is only payable on the difference (profit) between the buy price and sell price.
eg. BUY @ £2000 SELL @ £14300 = £12300 profit, ie. no CGT to pay
It is due each financial year, so another option for you is to sell some before 6th April and more after, thereby effectively doubling you CGT allowance.

Just to be even clearer (hopefully), it isn't 'due each financial year' as such - it's only due in any financial year in which you make qualifying disposals above the annual CGT allowance, which resets each year.

CGT allowance was frozen until April 2026 in the last budget.  The squeeze is coming.