Is it possible to sell shares and transfer to isa.

Tattie63

Can I sell my shares to the value of 20k and transfer into a ISA without paying any tax.

lisyloo

What gain are you making on the shares?

Tattie63

Unsure of total gain.Paid £1.92 and worth £5 now roughly

lisyloo

I believe the gain is chargeable to capital gains, so you will need to work it out.

Based on £5, then you have 4000 shares.
£3.08 gain * 400 =£12320

You have a tax free allowance of £3000.

Keep_pedalling

lisyloo said:

I believe the gain is chargeable to capital gains, so you will need to work it out.

Based on £5, then you have 400 shares.
£3.08 gain * 400 =£1232

You have a tax free allowance of £3000, so no CGT is due assuming you aren't using your allowance for anything else.

They will have at least 4000 shares if they can sell £20,000 worth of them, so their gain will £12,320. Unless you have some other assets to dispose of that are sitting at a loss you can’t sell £20k worth without incurring a CGT liability. 

ColdIron

You can sell (roughly) 974 of your £5 shares to realise a gain of just under the £3,000 Annual Exempt Amount

Rinse and repeat for 3 more years, or however long is required if they are worth > £20,000 in total. You should do this as the problem is likely to get worse

lisyloo

Apologies. missing zero (which is why I put the workings), will update.

Tattie63

My total amount of shares,are near 7000.

I have held these shares for a number of years,without doing anything with them.
I was just wondering the score,as I am not getting any younger.
Thanks for the information.

eskbanker

Tattie63 said:

My total amount of shares,are near 7000.

I have held these shares for a number of years,without doing anything with them.
I was just wondering the score,as I am not getting any younger.
Thanks for the information.

None of us is getting any younger, that's just how life works!

If you hold £35K worth of a single share, of which about £21K is taxable gains, then you'd need to sell them across seven years to avoid being subject to capital gains tax, assuming no significant change to the value of the shares over that time or changes to the CGT regime, neither of which is probably a particularly safe assumption.

As well as assessing the extent to which you wish to prioritise avoiding a tax bill, you might also consider the risk of a substantial holding in one company, i.e. so many eggs in one basket when diversification is generally wiser, but much will depend on how significant this holding is relative to your other assets?

Tattie63

Is it possible for myself to cash in  £3000 per year as your suggesting.
Is my wife entitled to the same amount or not ?
Which would myself transferring over to her name on sale ?

lisyloo

You can cash in a GAIN of £3000 per year without incurring CGT (that isn't £3000 worth of shares but the gain).
You can transfer shares to your wife as gifts between spouses are tax free.
So you could transfer 50% to her, then both sell £3000 GAIN this year then £3000 GAIN each after 6/4/25.

From your approximation I think the gain is a bit more than £12K but that's approximate and shares rise and fall.

The CGT allowance could change for 2025 so you'd also need to keep an eye on that, but at the moment it's £3K each.