Capital Gains Tax for shares - Do you pay tax on all or just the amount above the £6k allowance?

EuroPean

Hi, 

I know the answer to this is a lot more nuanced, but if you sell shares above the personal allowance of £6k, do you pay CGT on the total amount or just anything over £6k?

Hope that makes sense!

TVM!

ColdIron

I assume you mean the Annual Exempt Amount rather than the £12,570 Personal Allowance

You pay CGT on gains in excess of the AEA, it wouldn't be much of an 'allowance' otherwise

https://www.gov.uk/capital-gains-tax/allowances

fwor

The latter. There is an example that illustrates how on the .gov.uk website on CGT:

https://www.gov.uk/capital-gains-tax/rates

Beddie

Also, you only pay tax on the gain, not on the proceeds. Might be obvious, but you didn't specifically state a gain, just a sale.

km1500

you work out the gain on the sale of your shares 

deduct any costs you paid when you bought your shares and when you sold your shares (this includes the stamp duty you paid)

you then deduct 6,000 and then pay tax on the rest