Do I need to do something about capital gains on shares?

Brie
Brie Posts: 9,282
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ok so in my ongoing saga of trying to make sense of my finances I'm currently looking to move shares out of a company share save/purchase situation and into an investment account.  Must go into an investment account not an ISA as the schemes matured nearly a year back.  Would have done something sooner if I'd realised.....

So transferring seems to be fairly straight forward, charges on the receiving account will be blessed minimal (though anything above the current no charge is a bit of bump).  

And the plan is to hold the shares until I want to sell them.  Like when the price is right or I'm truly desperate for cash.  

But how do I know what I've gained on these shares?  I don't know how many shares have been bought at what price.  I can account for some but not all.  Given that some were purchased each month by my employer over many years and dividends reinvested there's no way I could put together an accurate account of them all.  Could I do a calculation when I transfer the shares out of their current location to set a share price on that day?  Or do I have to do something else?  

And I know that there's some sort of limit on how much CGT you can earn without paying tax but what is that limit?  And what do I do with it once I know?  I'm possibly going to need to file a tax return for the first time ever in the UK and have no idea what info I need and where I get it all.  
"Never retract, never explain, never apologise; get things done and let them howl.”

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  • eskbanker
    eskbanker Posts: 29,898
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    You need to establish the acquisition price for all of them, however difficult that may be, rather than using that applicable at a later more convenient date.

    The annual CGT allowance is currently £6K but halves to £3K from 2024/25 onwards, so you may need to calibrate the number of units you sell to keep the gain to those figures, unless you're happy to pay some CGT?

    https://www.gov.uk/capital-gains-tax
    https://www.gov.uk/tax-sell-shares
  • Brie
    Brie Posts: 9,282
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    thanks @eskbanker

    So I've found a report on the share website that shows how many shares I've purchased and my employer purchased for me over my whole employment.  I had thought I was going to have to go back month my month over quite a few years!!

    The summary shows the average price paid was £1.81 which is higher than the current price if I was selling.  I assume it doesn't matter if it was me who bought the shares or not.  So if I wait until the share price is back above £1.81 there will be gains but I doubt these will be significant.  Unlikely to hit £6k or even £3k I'm guessing.  

    But if I manage to move the shares into an investment ISA I'm guessing that there would be no CGT at all.  I'm not sure if this will be possible or not but will be taking the first step of moving them into an investment account at the very least.  

    And if I am under the CGT limit I don't need to include those on a tax return.  Or should I include even a small amount of gain for CGT just to be safe?  

    ....so now I just need to figure out how to do a tax return for the other things in my life.....like how to report in January on foreign tax which I won't have an amount for until sometime a few months later.....
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • eskbanker
    eskbanker Posts: 29,898
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    Brie said:
    So I've found a report on the share website that shows how many shares I've purchased and my employer purchased for me over my whole employment.  I had thought I was going to have to go back month my month over quite a few years!!

    The summary shows the average price paid was £1.81 which is higher than the current price if I was selling.  I assume it doesn't matter if it was me who bought the shares or not.  So if I wait until the share price is back above £1.81 there will be gains but I doubt these will be significant.  Unlikely to hit £6k or even £3k I'm guessing.
    If that average covers all shares acquired, from employer and employee, and including dividend reinvestment, then yes, that's all you need.

    Brie said:
    But if I manage to move the shares into an investment ISA I'm guessing that there would be no CGT at all.  I'm not sure if this will be possible or not but will be taking the first step of moving them into an investment account at the very least.
    If I recall correctly from another thread, you're too late to transfer them directly into an ISA from the sharesave scheme, so, as the only other way to fund an ISA is with cash,you'll need to sell them, and CGT does come into play when you do so, based on the price you sell at.  Thereafter, any further gains if you repurchase them within the ISA are tax-free.

    Brie said:
    And if I am under the CGT limit I don't need to include those on a tax return.  Or should I include even a small amount of gain for CGT just to be safe?  

    ....so now I just need to figure out how to do a tax return for the other things in my life.....like how to report in January on foreign tax which I won't have an amount for until sometime a few months later.....
     You only need to report a chargeable gain if it exceeds your annual CGT allowance.  I don't follow your last point - why would you need to report on tax that hasn't been incurred yet?
  • Brie
    Brie Posts: 9,282
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    @eskbanker
    1 - thanks
    2 - thanks - so I could sell the shares in an investment account, effectively take a loss on them and put the cash in the ISA and buy the shares again.  Which I think would cost me £12 total for 2 trades.  
    3 - thanks - sorry to confuse you.  I have a foreign state pension that went into payment in January.  Tax is deducted automatically - I think.  But I shouldn't be paying income tax there and should pay in the UK.  But I can't access anything to do with the actual payments for the foreign state pension online so need to wait until they send me the appropriate tax document (equivalent to a P60) by post and I won't get that before at least the end of February as their tax year ends 31 December.  I can't get online with their HMRC equivalent because I haven't paid tax there in the last 6 years (haven't lived there for nearly 30).  So until they have a record from the pension department there is nothing they can tell me.  And then I have to fly there to register for an online account so I can do my tax return with them as well.  And that needs to be submitted by 30 April after which I will likely get a tax refund so I can then report the proper income in the UK.  All for what will likely end up being about £150 worth of income tax.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
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