CGT Question

Tripledrop

I have a question on capital gains tax and wondered if someone could help.. I am speaking to my accountant at some point soon as well

I invested in a company I worked for around 6 years ago. The investment paid me a good return 3 years later. At that point I had the option to take the money, or reinvest for another 3 years. I chose the latter. The company (on paper) withdrew my CGT allowance at that point (£12.5k ish?) from my gains, and then the whole amount was reinvested with some additional I put in.

I've just had the next 3 years complete and I've withdrawn all the money (I didn't have a choice as I no longer work at that company).

I know that 12.5k of my total gains have already been accounted for so no tax is due on that amount. I know I have another 12.5k ish from this tax year, so no tax due on that amount.

My question is probably a stupid one, but is that it in terms of allowances I can use? 

Or even any other way of reducing the amount I have to pay tax on..

33% I believe so fairly hefty. Is it a flat fee?

Thanks and apologies for my stupid questions!

EthicsGradient

I think we, and your accountant, need clarification on what "the company (on paper) withdrew my CGT allowance at that point (£12.5k ish?) from my gains, and then the whole amount was reinvested with some additional I put in" means.

It wouldn't normally be up to the company to deal with your personal CGT allowance. Are you saying that the company valued your investment, worked out how much of it would give you a gain of just under the allowance, and then advised you to say you wanted to sell that amount to - who? eg if you invested £15,000, that was valued 3 years later at £40,000, then you had a total gain on paper of £25,000; so you could sell slightly under half of your investment, and not pay CGT if you didn't have any other gains from anything that year (did you tell them that?). If you did this, then you also need to know how many days elapsed between you selling, and you reinvesting - if under 30, the "bed and breakfast" rule could apply to you, which may mean you're now liable to more tax than you thought.

Secret2ndAccount

Forget about the shares that were sold 3 years ago. All that matters is the price at which you bought them back. For every share that you own now, add up the total purchase cost. Add up the total sale value after dealing costs. The difference, in £ is your capital gain. Subtract £12,300. This is your taxable gain.
The CGT rate for shares is 10% for basic rate taxpayers and 20% for higher rate taxpayers, but, importantly, the taxable gain is added to your salary. So your cap gain can push you into higher rate tax, meaning some of the gain gets taxed at 20% even if you are normally a basic rate taxpayer.
Example:
Salary 40k - basic rate taxpayer
Cap gain 22,300.
Taxable gain 10,000
40k + 10,000 = 50k - still a basic rate taxpayer. CGT rate 10%
CGT = 1,000

Example 2:
Salary 40k - basic rate taxpayer
Cap gain 42,300.
Taxable gain 30,000
40k + 30,000 = 70k - now you reach the higher rate tax band.
On the part that takes you from 40k to 50,270, CGT rate is 10%,   so 1,027
from 50,270 to 70k, CGT rate is 20%, so 3,946
Total CGT: 4973

If you are already a higher rate taxpayer, the maths gets easy again - 20%.
Your personal higher rate threshold may differ from 50270

Simples. Unless you can spread the sales over multiple years there are no dodges.

Edit: Two additions:
1. I agree with what Ethics Gradient says, but I assume that your company did legally bed-and-breakfast some shares for you, and was aware of the 30 day rule.
2. Do you have anything you could sell at a loss, or anything you previously sold at a loss? I have some shares that are under water right now. I could sell them to crystallise that loss, then buy the same number back in my ISA. That loss would then be subtracted from my total gain. Old losses can be carried forward though I think you have to tell HMRC about them within 4 years in order to keep them for later.