Reducing CGT on company shares

NOVAMET21

Hi
Any advice would be appreciated.

Are there any ways to to reduce the CGT after receiving the gains from company shares.

One of the thing I have heard is that if I put the gains into ISA account then I don't have to pay the CGT. Not sure if this is true.

p00hsticks

NOVAMET21 said:

Hi
Any advice would be appreciated.

Are there any ways to to reduce the CGT after receiving the gains from company shares.

One of the thing I have heard is that if I put the gains into ISA account then I don't have to pay the CGT. Not sure if this is true.

No it's not. 
If you had bought the shares from within the ISA (assuming that they were the type of ,mainstream share you could) then any gain would have been CGT free.  But if you have bought and sold outside an ISA then I'm not aware of any way you can avoid paying CGT on the amount of gain over your CGT allowance. And even if there was, it's would almost certainly involve an action being taken before you actually sold them.

On-the-coast

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

NOVAMET21

On-the-coast said:

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

I presume u could transfer the gains to spouse's ISA and children's ISAs too?

And I presume that any left over gains then is liable for CGT?

Thanks

[Deleted User]

NOVAMET21 said:

On-the-coast said:

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

I presume u could transfer the gains to spouse's ISA and children's ISAs too?

And I presume that any left over gains then is liable for CGT?

Thanks

Transferring shares into an ISA is a disposal for capital gains tax purposes - just as if you sold them and kept the money without reinvesting. The only question is whether the shares in the particular scheme that you describe are in some way exempt. 

p00hsticks

NOVAMET21 said:

On-the-coast said:

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

I presume u could transfer the gains to spouse's ISA and children's ISAs too?

And I presume that any left over gains then is liable for CGT?

Thanks

Can you please clarify what exactly you mean when you talk about gains ?
Do you have shares that on paper have gained in value since you acquired them,  but you still have the shares ?
Or have you sold the shares and therefore 'crystallised' the gain (i.e.you have the extra money in your bank account)

And are the shares (as on-the-coast suggests) ones that you have acquired via some sort of employee company share save scheme ? If they are, which I hadn't considered when replying initially, then there are ways of transferring the shares directly from the share save scheme into an ISA. I think you only have a limited time to do it though. 
 

NOVAMET21

p00hsticks said:

NOVAMET21 said:

On-the-coast said:

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

I presume u could transfer the gains to spouse's ISA and children's ISAs too?

And I presume that any left over gains then is liable for CGT?

Thanks

Can you please clarify what exactly you mean when you talk about gains ?
Do you have shares that on paper have gained in value since you acquired them,  but you still have the shares ?
Or have you sold the shares and therefore 'crystallised' the gain (i.e.you have the extra money in your bank account)

And are the shares (as on-the-coast suggests) ones that you have acquired via some sort of employee company share save scheme ? If they are, which I hadn't considered when replying initially, then there are ways of transferring the shares directly from the share save scheme into an ISA. I think you only have a limited time to do it though. 
 

Yes, employee company shares.

Will recieve it once the company has been sold.

eskbanker

NOVAMET21 said:

p00hsticks said:

NOVAMET21 said:

On-the-coast said:

Depends on your company share sceme details.  If they arose from a tax except share saving plan, there is no taxable capital gain (yet). 

If you want to keep them then transferring them to an isa (like any other share if less than 20k value) would remove CGT and dividend tax liability in the future. 

In some circumstances you may be able to transfer directly from a company scheme to an isa if it’s a uk listed company. 

I presume u could transfer the gains to spouse's ISA and children's ISAs too?

And I presume that any left over gains then is liable for CGT?

Thanks

Can you please clarify what exactly you mean when you talk about gains ?
Do you have shares that on paper have gained in value since you acquired them,  but you still have the shares ?
Or have you sold the shares and therefore 'crystallised' the gain (i.e.you have the extra money in your bank account)

And are the shares (as on-the-coast suggests) ones that you have acquired via some sort of employee company share save scheme ? If they are, which I hadn't considered when replying initially, then there are ways of transferring the shares directly from the share save scheme into an ISA. I think you only have a limited time to do it though. 

Yes, employee company shares.

Will recieve it once the company has been sold.

The ability to transfer shares into an ISA (avoiding CGT liability) is conditional on membership of very specific types of sharesave schemes, and if you'll acquire shares only when your employer is sold, that doesn't sound like one such scenario:

https://www.gov.uk/tax-employee-share-schemes/transferring-your-shares-to-an-isa