Capital Gains Tax on selling shares and personal allowance

CaptainSkeptical

Hi - my wife is retired with no income from pensions etc and only earns a small amount of interest from savings.  She has some Santander shares and is thinking of selling them through Santander's online 'Shareview Dealing'.  They have a current value of approx £1400.  I've looked at the HMRC website regarding tax on the selling of shares.  Am I correct in thinking that as selling these shares would mean she's still beneath her annual Capital Gains Tax allowance of £3000, then she won't be liable to pay any tax from the disposal?  She doesn't want to inadvertently fall foul of HMRC so any guidance would be gratefully recieved.

Nomunnofun1

CaptainSkeptical said:

Hi - my wife is retired with no income from pensions etc and only earns a small amount of interest from savings.  She has some Santander shares and is thinking of selling them through Santander's online 'Shareview Dealing'.  They have a current value of approx £1400.  I've looked at the HMRC website regarding tax on the selling of shares.  Am I correct in thinking that as selling these shares would mean she's still beneath her annual Capital Gains Tax allowance of £3000, then she won't be liable to pay any tax from the disposal?  She doesn't want to inadvertently fall foul of HMRC so any guidance would be gratefully recieved.

In a nutshell - all correct! 

One presumes she is claiming marriage allowance?

CaptainSkeptical

Thanks.  I don't think she's claiming marriage allowance.  I thought that was only a thing if she had enough income to be taxed?

eskbanker

CaptainSkeptical said:

Thanks.  I don't think she's claiming marriage allowance.  I thought that was only a thing if she had enough income to be taxed?

It works by transferring some allowance from a non-taxpayer to a taxpayer, so on the face of it fits your circumstances well if you pay basic rate tax?

Nomunnofun1

CaptainSkeptical said:

Thanks.  I don't think she's claiming marriage allowance.  I thought that was only a thing if she had enough income to be taxed?

She should. She can claim here for this and the previous four tax years (only four weeks left before 2020/21 drops out)

https://www.gov.uk/marriage-allowance

CaptainSkeptical

Thanks - I'm currently in the Scottish higher tax bracket of 42%.  Does this make any difference if it's her shares?

Nomunnofun1

CaptainSkeptical said:

Thanks - I'm currently in the Scottish higher tax bracket of 42%.  Does this make any difference if it's her shares?

No it doesn’t. She can’t claim marriage allowance though if you pay tax at that rate. 

CaptainSkeptical

Thanks folks - much appreciated.