Understanding Capital Gains Tax

Haddenham35

Hi - looking for some guidance on CGT and how/when it applies, as I've just cashed in some company shares and would like to pay any tax bill now (leaving the remaining amount to put towards our house extension).

The headlines are:

- received the shares in December 2017, but as it's an American company it was held in a Fidelity plan in the US
- I believe these were taxed at the time of receipt but it's a former employer so can't easily check
- at the time of receipt the shares were worth $4068.63
- sold these shares on 25th Nov 2025 for $8640
- works out as a gain of $4,571.37 (£3,415.64 when put through a XE currency converter)

initial questions:

1) am I paying CGT on the total $8640? Or the gain of $4,571?
2) do I get a CGT allowance of £3k that I can factor in?
3) let's say I just owe CGT on the £3,415, could I pay £500 into an ISA to get me under the £3k allowance and therefore not incur an additional tax charge?

any advice or support would be really appreciated.

many thanks

Dazed_and_C0nfused

Haddenham35 said:

Hi - looking for some guidance on CGT and how/when it applies, as I've just cashed in some company shares and would like to pay any tax bill now (leaving the remaining amount to put towards our house extension).

The headlines are:

- received the shares in December 2017, but as it's an American company it was held in a Fidelity plan in the US
- I believe these were taxed at the time of receipt but it's a former employer so can't easily check
- at the time of receipt the shares were worth $4068.63
- sold these shares on 25th Nov 2025 for $8640
- works out as a gain of $4,571.37 (£3,415.64 when put through a XE currency converter)

initial questions:

1) am I paying CGT on the total $8640? Or the gain of $4,571?
2) do I get a CGT allowance of £3k that I can factor in?
3) let's say I just owe CGT on the £3,415, could I pay £500 into an ISA to get me under the £3k allowance and therefore not incur an additional tax charge?

any advice or support would be really appreciated.

many thanks

Someone more knowledgeable on CGT will no doubt be along shortly but the answer to 2) is why wouldn't you?

Is there something you're not telling us, like you aren't UK resident?  Or have other gains that have used the allowance?

3) is a definite no.  Paying money into an ISA will not have any bearing on the amount of the gain that is taxed.

Haddenham35

Dazed_and_C0nfused said:

Haddenham35 said:

Hi - looking for some guidance on CGT and how/when it applies, as I've just cashed in some company shares and would like to pay any tax bill now (leaving the remaining amount to put towards our house extension).

The headlines are:

- received the shares in December 2017, but as it's an American company it was held in a Fidelity plan in the US
- I believe these were taxed at the time of receipt but it's a former employer so can't easily check
- at the time of receipt the shares were worth $4068.63
- sold these shares on 25th Nov 2025 for $8640
- works out as a gain of $4,571.37 (£3,415.64 when put through a XE currency converter)

initial questions:

1) am I paying CGT on the total $8640? Or the gain of $4,571?
2) do I get a CGT allowance of £3k that I can factor in?
3) let's say I just owe CGT on the £3,415, could I pay £500 into an ISA to get me under the £3k allowance and therefore not incur an additional tax charge?

any advice or support would be really appreciated.

many thanks

Someone more knowledgeable on CGT will no doubt be along shortly but the answer to 2) is why wouldn't you?

Is there something you're not telling us, like you aren't UK resident?  Or have other gains that have used the allowance?

3) is a definite no.  Paying money into an ISA will not have any bearing on the amount of the gain that is taxed.

2) was just my lack of knowledge on the subject, I am a UK resident and have no other gains. Just wanted to double check on the allowance point.

NorthYorkie

1) To calculate the gain you need to convert the sales proceeds of $8640 to Sterling at the rate applicable on the date of sale and also convert the $4068 cost at the rate applicable on the date of acquisition (this would be the amount on which you would have been charged income tax at the time).