cgt on saye

bumpergirl

When transferring[hopefully] saye proceeds soon to an ISA, can I first withdraw the original amount paid in, which would not be liable for CGT anyway?

this would simplify matters when I later transfer other sharesave to the isa

DRS1

I confess I don't quite understand the question. But perhaps you are talking about using a flexible ISA to catch more than £20k worth of shares from an SAYE Scheme? It is something which has been mentioned on here in the past.

This suggests it may not be that simple

HMRC Warns Savers Over ISA Transfers From SAYE Schemes

bumpergirl

Thank you for your reply. I meant cashing in the appropriate number of shares to cover amount invested, then transferring the rest to an isa

DRS1

No if you do that you will trigger a CGT calculation (and maybe a charge depending on the figures). This is because if you pay 1k to acquire 10k worth of shares and then sell 1k worth of the 10k your 1k base cost is spread over the whole 10k of shares so only 100 of it is applied to the 1k worth you sell.

Of course if you only make a 900 gain you are within the 3k allowance and pay no CGT.

Better if you can to put all the shares you get from the SAYE exercise into the ISA and sell from within the ISA - that way you don't need to worry about CGT at all. There may be an issue if you don't have room in this years ISA for the value of shares you are acquiring (or you are acquiring over £20k worth of shares. That is where the flexible ISA thing came in but it looks like that may have been closed off).

DRS1

As an aside the concept of selling enough shares to cover the exercise price is something you do see with executive share option schemes. It is not usually done with SAYE schemes because the money you have been saving each month is there to pay the exercise price.