Save you earn Shares Sold

Its_all_Dinx

Hi,

I had two plans and decided to keep my shares.   The share price has now doubled and if I sold I will earn approx 48k.  ( Or 24k profit.)

It has been more than 3 years I have held these shares. 

Would I have to pay Capital Gains tax or any other tax for that matter?

Thank you in advance. 

I hope this is simple  many tax things can get very complicated.

eskbanker

On the face of it, yes, you'd be liable to CGT on the gains, although have an annual CGT allowance of £12,300 - if you sold over two different tax years then this would eliminate the CGT liability....

pjread

^ what eskbanker says; if you can try to only sell enough to make good use of the allowance & pay no/little CGT.  It's just about the only really 'optional' tax.

Also to clarify if first time and not obvious to you - it's on the "profit" not the total - so if you paid £12k for some shares and sold for £24k, that's a gain of £12k.  If that's your only gain that tax year, there would be no CGT payable. 

Its_all_Dinx

Thanks,

Pjread and eskbanker.

I went back to have a read at gov website and it now makes more sense.

This requires alot of thinking and old fashion pen and paper to workout how much to sell without hitting a CGT and also need to take into consideration is personal income.   I also need to weigh up is it worth keeping them as the dividend yeald is 2.7%.

ColdIron

Its_all_Dinx said:

I also need to weigh up is it worth keeping them as the dividend yeald is 2.7%.

There are reasons to sell Santander shares but the dividend isn't one of them. Amazon have never paid a dividend, would you dismiss them?

22225

If ur married can u use ur wife's allowance?!

wmb194

Its_all_Dinx said:

I also need to weigh up is it worth keeping them as the dividend yeald is 2.7%.

You could sell them and invest the proceeds in an equity income fund that pays 5%+ if that's what you wanted. It'd be less risky too as you'd be investing in lots of companies rather than just one.

[Deleted User]

Its_all_Dinx said:

Thanks,

Pjread and eskbanker.

I went back to have a read at gov website and it now makes more sense.

This requires alot of thinking and old fashion pen and paper to workout how much to sell without hitting a CGT and also need to take into consideration is personal income.   I also need to weigh up is it worth keeping them as the dividend yeald is 2.7%.

Hi,

no need for pen and paper, here's a wee GADGET will do it for you, just play around with different figures.