Capital gains tax calculation

YoungSaver20

Hi everyone, I have a sharesave, does not mature until next year so I realise a lot of things could change including isa limits and the share price. According to the policy document, I will need to pay CGT.

its a £10,800 investment over 3 years at £300 a month. Currently the investment is £38,600 based on the share price. 

When the options mature in November 2026 I’ll transfer £20,000 to investment isa and the rest to an investment account. The £18,600 when I sell that will then be subject to CGT but just a bit unsure on how it works.

Will it be £18,600 - £10,800 (or is this say half that amount for the cost I paid for that half of the shares)?
£7,800

ill then have my capital gains tax tax free allowance at £3,000


£4,800 at 18%

= £864

i also have a £2000 investment from this year which did lose as the company went out of business so I’ll be declaring that loss, will that then be deducted from what I owe in capital gains tax?

I also have other investments which have lost money but they currently still live and could go up or down, could I use those to offset any capital gains tax?

Current salary is £40,500

Dazed_and_C0nfused

YoungSaver20 said:

Hi everyone, I have a sharesave, does not mature until next year so I realise a lot of things could change including isa limits and the share price. According to the policy document, I will need to pay CGT.

its a £10,800 investment over 3 years at £300 a month. Currently the investment is £38,600 based on the share price. 

When the options mature in November 2026 I’ll transfer £20,000 to investment isa and the rest to an investment account. The £18,600 when I sell that will then be subject to CGT but just a bit unsure on how it works.

Will it be £18,600 - £10,800 (or is this say half that amount for the cost I paid for that half of the shares)?
£7,800

ill then have my capital gains tax tax free allowance at £3,000


£4,800 at 18%

= £864

i also have a £2000 investment from this year which did lose as the company went out of business so I’ll be declaring that loss, will that then be deducted from what I owe in capital gains tax?

I also have other investments which have lost money but they currently still live and could go up or down, could I use those to offset any capital gains tax?

Current salary is £40,500

I very much doubt that will be possible.

It may be it's a factor earlier in the overall calculation though, reducing the amount liable to CGT.

DRS1

You may want to read this thread
Clarification needed on 90 day SAYE shares to ISA transfer. — MoneySavingExpert Forum
I am not entirely sure if it is actually possible to avoid CGT on all your SAYE shares but if your ISA is a flexible one it may be.

As to your CGT calculation you need to apportion the base cost per share so if you bought 10800 shares at £10800 each share costs £1.  Then look at what you sell each share for - if it is £3 then your gain is £2 per share.

FrugaiMacDugal

YoungSaver20 said:
its a £10,800 investment over 3 years at £300 a month. Currently the investment is £38,600 based on the share price. 

When the options mature in November 2026 I’ll transfer £20,000 to investment isa and the rest to an investment account. The £18,600 when I sell that will then be subject to CGT but just a bit unsure on how it works.

Will it be £18,600 - £10,800 (or is this say half that amount for the cost I paid for that half of the shares)?
£7,800

ill then have my capital gains tax tax free allowance at £3,000


£4,800 at 18%

= £864

Using your figures:

£20,000 is 51.81% of £38.600, they cost you £5595 to buy,

£18,600 is 48.19% of £38,600, they cost you £5205 to buy.

So, it'll be £18,600 - £5205 = £13,395.

Using your reasoning, £13,395 - £3000 = £10,395 @ 18% = £1871.

Might be easier using DRS1's method.