Sale of SIP shares

kc9423

My husband retired 10 years ago.
Whilst employed he purchased company shares through SIP.
The shares have increased in value and would now like to sell some.
Would he have to pay CGT?
He knows allowance decreases to £3,000 in April, but would his profit be taxable, given they were purchased over 20 years up to day he retired?

artyboy

Yes, assuming the shares are no longer in the SIP scheme, then CGT applies. 

I can't comment on whether the rules have changed in the last 10 years, but when I sold my own SIP shares last year, the acquisition price was considered to be the market price at the point the shares left the scheme (i.e. when I left the company and moved the shares to my own brokerage account) - that may be beneficial for you, and would certainly involve less working out prices at different dates when the shares were actually bought within the scheme.

Roger175

kc9423 said:

My husband retired 10 years ago.
Whilst employed he purchased company shares through SIP.
The shares have increased in value and would now like to sell some.
Would he have to pay CGT?
He knows allowance decreases to £3,000 in April, but would his profit be taxable, given they were purchased over 20 years up to day he retired?

Could you clarify what you mean - did you mean the shares have been held within his SIPP (as in 'self-invested personal pension'). If so, any capital gains within the SIPP are not subject to CGT, albeit he may well have to pay tax on withdrawing the money from the SIPP, depending on his other earnings

eskbanker

Roger175 said:

kc9423 said:

My husband retired 10 years ago.
Whilst employed he purchased company shares through SIP.
The shares have increased in value and would now like to sell some.
Would he have to pay CGT?
He knows allowance decreases to £3,000 in April, but would his profit be taxable, given they were purchased over 20 years up to day he retired?

Could you clarify what you mean - did you mean the shares have been held within his SIPP (as in 'self-invested personal pension'). If so, any capital gains within the SIPP are not subject to CGT, albeit he may well have to pay tax on withdrawing the money from the SIPP, depending on his other earnings

OP is referring to SIPs (Share Incentive Plans) not SIPPs (Self-Invested Personal Pensions):

https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips

Roger175

eskbanker said:

Roger175 said:

kc9423 said:

My husband retired 10 years ago.
Whilst employed he purchased company shares through SIP.
The shares have increased in value and would now like to sell some.
Would he have to pay CGT?
He knows allowance decreases to £3,000 in April, but would his profit be taxable, given they were purchased over 20 years up to day he retired?

Could you clarify what you mean - did you mean the shares have been held within his SIPP (as in 'self-invested personal pension'). If so, any capital gains within the SIPP are not subject to CGT, albeit he may well have to pay tax on withdrawing the money from the SIPP, depending on his other earnings

OP is referring to SIPs (Share Incentive Plans) not SIPPs (Self-Invested Personal Pensions):

https://www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips

My apologies!! In which case ignore my reply