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Company Sharesave & CGT

Hi, I have a company Sharesave which is due to finish in November. When my plan matures it will make about £20k profit, normally I just transfer the shares to a holding account where I work. With regards to CGT would I be able to take out £3k each year and not pay any extra tax or does the CGT go on the amount automatically within my share holding.

Comments

  • Strummer22
    Strummer22 Posts: 726 Forumite
    Ninth Anniversary 500 Posts Name Dropper Combo Breaker
    Hi, I have a company Sharesave which is due to finish in November. When my plan matures it will make about £20k profit, normally I just transfer the shares to a holding account where I work. With regards to CGT would I be able to take out £3k each year and not pay any extra tax or does the CGT go on the amount automatically within my share holding.
    If you still own the shares then the gain is not realised and CGT is not due.

    In other words CGT is only due when you sell the shares.
  • DRS1
    DRS1 Posts: 1,648 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Have you got room to get the shares (or some of them) into an ISA?

    If you can't get them in an ISA then you can realise £3k of gain each tax year without paying CGT.  So if you have bought 10000 shares under the Sharesave for £10000 and they are now worth £30000 you don't have to limit your sale to 1000 shares realising £3000 because the gain would only be £2000.  You could sell 1500 shares realising £4500 with a gain of £3000.

    Two things to bear in mind 

    If you sell anything else in the year that is subject to CGT you have to add the two lots of gain together and may then be over the £3000 annual allowance.

    If you have more of the same shares from previous Sharesave Schemes held outside an ISA then you need to pool the holdings to work out the gain.  So your base cost per share on the 10000 shares just bought may be less than £1 because you paid less than £1 per share for the ones bought previously.  That only matters if the shares are the same so if the previous Sharesave Scheme was with BP and the current one is with Shell then those holdings are completely separate. 
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