Help with the dreaded CGT on shares, some in SAYE scheme, some not

Dead_keen

https://forums.moneysavingexpert.com/discussion/comment/81878745#Comment_81878745

There's not an obvious exemption, but there is a notional one. Some regulations notionally amend TCGA without actually amending it. Have a look here: https://www.legislation.gov.uk/uksi/1998/1870/regulation/34. I'm just looking at this on a phone so haven't read it properly and may have misremembered.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81879280#Comment_81879280

Well done. It looks like the "notional" section 106A(12)(b)(i) may be just what the OP is looking for (especially the "from the date of their acquisition by him" language).

poseidon1

With regard to the OPs question need to go back to first principles.

The section 104 pool solely relates to identifying base cost of shares/investments potentially liable to CGT on disposal.

In this regard SAYE shares have special status. They cannot be CGT exposed or form part of a s104 pool during the subscription build up period because the employee does not own them ( no vesting yet).

Crucially however, they also remain CGT exempt where the employee exploits the HMRC concession to transfer said shares out of the employers scheme into an isa within the 90 day qualifying period.

Since during that period they are wholly exempt, they cannot be part of a s104 pool for cgt identification purposes. The LOA acts as a protective shield from CGT on the transferred SAYE shares, notwithstanding the fact they maybe held in GIA holding account prior to.

It is a unfortunate that HMRC do not spell this out explicitly, and leave many employees to their own devices trying to navigate the rules in the OP's circumstance, or seek professional advice.

As regard the 2000 shares purchased outside the scheme these are clearly liable to CGT from outset and form the s104 pool from date of purchase.

Since those shares will evidently be sold at a loss, that loss is 1st matched against any realised gains already made during this tax year, potentially leaving the £3,000 exemption intact depending on the numbers involved.

I would add that it is not that unusual for employees of large companies to buy shares in their employer separate and distinct from any qualifying share plan they maybe subscribing to - my firm dealt with a number of higher paid managers who did so. Careful advanced planning involving ISAs and SIPPs helped maximise the tax benefits of such schemes, as well as judicious transfers to spouse, where these tax wrappers were fully utilised.

toothtyke

Perfect. Thanks all