Sharesave help
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CamperMan_3
Posts: 10 Forumite
Hi all, I need some advice about my company sharesave scheme. It matured a while ago and I took the option to have the shares and they are currently sat there with the scheme provider. I could do with getting the cash out but not sure how to go about it without getting clobbered for capital gains tax. Any thoughts would really be appreciated.
Thanks, Graham
Thanks, Graham
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How long was “a while ago”? Was it more than 90 days? What is the quantity and value of the shares and how much was the price paid?Up to 90 days you can transfer some or all into an ISA before selling subject to the provider supporting this and allowances. After that will depend on your gain on sale amount.0
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Thanks for getting back to me. Yes more than 90 days, life has been really difficult recently so was a lower priority and I think when there was a choice of cash or the shares I went with the shares thinking the difference would incur capital gains tax if I went with the cash, also thinking I could move the shares later to my own ISA without there being a problem. I now think I might I be wrong and have made a mistake not sorting it sooner.I paid in £12000 over five years and the shares are currently worth £27000 which is great given our circumstances, but not if I loose a chunk. Any thoughts?0
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You have an unrealised gain of £15000. The CGT allowance this year is £6000 reducing next year to £3000. If you can gift transfer some of your shares to your spouse, you can make use of his/her allowance.
So you sell some shares to make a £6000 gain before 6th April, your wife does the same. You then sell the remaining shares after 6th April using next year's allowance.
You will have to move quickly - especially if you're not married yet!0 -
Thanks again.
Any thoughts on how to transfer to my wife, i.e. what’s the process for gifting?0 -
So I think you’re saying I icould I sell shares to take the original £12K out plus sell some more to cover the £6K without there being a CGT issue anyway, is that correct?0
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CamperMan_3 said:Thanks again.
Any thoughts on how to transfer to my wife, i.e. what’s the process for gifting?
If the shares are in a nominee account, you'd have to contact the nominee/broker.
In either case you'll be lucky to complete the process by the tax year end.
A safer strategy would be to take your £6000 gain this year, then divide the remaining shares with your wife and each take £3000 gains next tax year.
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CamperMan_3 said:So I think you’re saying I icould I sell shares to take the original £12K out plus sell some more to cover the £6K without there being a CGT issue anyway, is that correct?No. You need to work out the average cost per share (divide acquistion cost £12000 by number of shares held)Then work out the gain per share by subtracting the average cost per share from the current selling price per share.Divide 6000 by the gain per share to find the number of shares to sell within the £6000 allowance.Roughly: If selling £27000 worth of shares produces a gain of £15000Selling £27000/15000 will produce £1 of gain£27000/15000*6000 = £10800So sell £10800 of shares to realise a £6000 gainYou'll need to do the calculation again based on the price you achieve for your sale.For the avoidance of any doubt, all your shares are considered equal (fungible). It doesn't matter which you bought first. There is no benefit in selling the most recently acquired shares because "they've made less gain than the older ones". It doesn't work that way.1
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Thanks for your help with this btw, I really do appreciate you taking the time to respond. Ok, so I saved £12K at an offer price of £14 so ended up with 860ish shares. Just checking the price it’s £34 so worth £29K which is great, but not if I can’t get it out without getting clobbered for tax. So transferring to the wife aside what’s do I need to do to get the max out now and how much could that be?0
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CamperMan_3 said:Thanks for your help with this btw, I really do appreciate you taking the time to respond. Ok, so I saved £12K at an offer price of £14 so ended up with 860ish shares. Just checking the price it’s £34 so worth £29K which is great, but not if I can’t get it out without getting clobbered for tax. So transferring to the wife aside what’s do I need to do to get the max out now and how much could that be?Using your revised ball-park figures:Cost = £12000Present Value = £29000Gain = £17000CGT allowance = £6000£29000/17000*6000 = £10235So you need to sell £10235 worth of shares to realise a gain of £6000If all your shares were bought at £14 each and you sell at £34 you're making a gain of £20 per share6000/20 = 300 so selling 300 shares would realise a gain of £6000So to get the most out without paying CGT (assuming you've no other chargeable gains) you need to sell approx 300 shares before 6th April and you'll get approx £10200 minus the broker's selling fee.0
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brilliant, that really helps, so what happens/do I do with the remaining 560 shares?0
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