Pay Capital Gains Tax or transfer shares?

EthicsGradient

I don't think transferring an asset to a connected person avoids any CGT if you're only looking at gains; the rules are, as far as I remember and can see, only about how losses can be offset: https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/capital-gains-tax/capital-gains-tax-gifts

But you can dispose of about £12,500 worth in this tax year before you use up your CGT allowance (if you haven't made other gains), and about £6,000 in the next. If you haven't contributed to an ISA this tax year, you could put the money into one, and buy them - that's the "Bed and ISA" above. If not, then you can transfer them to one (or more) siblings before Apr 5th, then you won't have tax to pay this year, and future gains on that can be counted against their future allowance - if their stellar performance (over 33 times value in 13 years, and still paying a dividend over 5%) continues.

Snowdrop2023

I don’t know where to start with a bed-and-isa, Do you know who I would contact to see if it is possible?

EthicsGradient

A Bed & ISA is an offering from the existing platform you have your shares on. If they don't do it, or you have them in certificated form, you'd need to transfer them to a platform that does it, and I don't think you'd have time this tax year (and the hassle involved in that would be more than saved by using the Bed & ISA process at the end).

Do you have an existing Stocks & Shares ISA? Are these shares held on a trading platform, or do you have paper certificates?

Snowdrop2023

I don't have an existing Stocks and Shares ISA. I have a certificate and I've found a bit of paper that says I registered for a shareportal Capita at one time.

masonic

Snowdrop2023 said:

I don't have an existing Stocks and Shares ISA. I have a certificate and I've found a bit of paper that says I registered for a shareportal Capita at one time.

If these are shares that are traded on the London Stock Exchange, you would likely be able to deposit them into a general investment account so that you can trade them. This would allow you to bed&ISA them by selling and moving the proceeds into a S&S ISA, then repurchasing them. Some providers have a process to do all of this for you.

https://www.x-o.co.uk/how-to.html#transfer-certs is a popular choice for transferring in share certificates.

EthicsGradient

Snowdrop2023 said:

I don't have an existing Stocks and Shares ISA. I have a certificate and I've found a bit of paper that says I registered for a shareportal Capita at one time.

I'd suggest trying to find anyone who can process the certificates fast enough for you to sell in this tax year (or the £12,300 gains you could make this year could take another 4 years later on; or you'd have to pay perhaps £1,230 if you wanted the cash out before then). X-O would normally be a good choice, but they may or may not be able to work fast enough.

Capita's own dealing service, Link, would charge you 1.5% - so even if they are able to go ahead before they've received the certificates from you (check if you decide to use them), they'd charge £187.50 for selling £12,500 worth, which is steep.

Snowdrop2023

Thanks for all the advice. If I had been a bit more organised it would have helped! I'm not good with all of this, as you can tell. It has been nice that people have taken the trouble to help.