Offset shares loss

watt66

Hello,
I have a S&S account with shares that are pretty much worthless, a loss of around £645 if I sell. In February, I have a SAYE works share scheme maturing, with an anticipated profit of around £4500. I am aware I will have a £3000 cgt allowance and I am liable for 18% tax on the remaining £1500. I am also aware if I sell my loss making shares, I can offset this against my gains, Where do I start? I assume sell the losing shares first, how do I register this loss, who with, and what evidence do I need?. Then, how to claim this back, does it go on my tax code for income? Thanks for any advice.

poseidon1

watt66 said:

Hello,
I have a S&S account with shares that are pretty much worthless, a loss of around £645 if I sell. In February, I have a SAYE works share scheme maturing, with an anticipated profit of around £4500. I am aware I will have a £3000 cgt allowance and I am liable for 18% tax on the remaining £1500. I am also aware if I sell my loss making shares, I can offset this against my gains, Where do I start? I assume sell the losing shares first, how do I register this loss, who with, and what evidence do I need?. Then, how to claim this back, does it go on my tax code for income? Thanks for any advice.

See HMRC link to taxation of SAYE shares on maturity.

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye#:~:text=At the end of your,and what they're worth

Seems to me you would be best advised to transfer your matured shares to a stocks and share ISA within the 90 day window and so avoid triggering a taxable £4500 profit entirely. This assumes the  market value of the shares are within your current or 2025/ 26 ISA allowance. Thereafter you can  always encash the shares in the isa tax free and reinvest the proceeds in the ISA elsewhere.

As regards  realising and reporting  your allowable  capital loss after disposing of the virtually worthless shares, if you are not in the self assessment system and don't submit an annual tax return apparently you can simply write to HMRC setting out the basis for your   CGT loss, and presumably they will annotate your records accordingly - address below

Capital Gains Tax Queries

HM Revenue and Customs

BX9 1AS

United Kingdom

The loss can be carried forward indefinitely to offset against future gains in excess of the £3000 exemption. However,  if your only share holdings continue to be maturing SAYEs  ( with option to transfer tax free to ISA ), It maybe some years  before your loss can be utilised so you should keep your own record of it so as not to overlook its availability when the time comes.

watt66

Hi poseidon1,
Regarding transfering maturing shares, is this a "bed and ISA" ?. I have a Fidelity S&S ISA, I could enquire if they will accept the transfer. Thanks

poseidon1

watt66 said:

Hi poseidon1,
Regarding transfering maturing shares, is this a "bed and ISA" ?. I have a Fidelity S&S ISA, I could enquire if they will accept the transfer. Thanks

Never had to do this myself but see link below from HMRC.

Seems to be a process involving your scheme administrator providing information to  Fidelity (assuming they do permit transfers in). Looks like the administrators have to provide you with an LOA - see further link.

Perhaps there are other forum contributors with personal experience who can confirm.

https://www.gov.uk/tax-employee-share-schemes/transferring-your-shares-to-an-isa#:~:text=Your ISA provider must agree,the gain on your shares

https://edale.co/share-save-schemes-saye-sip-transfer-to-stocks-and-shares-isa/#:~:text=How to Transfer SAYE Shares into an,be transferred into a general trading account.