saye shares & CGT

Money_Bags1447

Hi, I'm retired but have a sizeable amount of money in shares, saye shares through my employer long time ago. I have know wish to do anything other than cash them.

My question is; do I still have to let HMRC know through self assessment if I sell shares with CGT below the £3000 limit? Is it only if CGT exceeds £3000 you need to declare through self assessment?

Thanks in advance.

phlebas192

You need to inform HMRC if your net gains are more than £3,000.

If you are required to complete a self assessment and your total disposals are more than £50k then you must complete the CGT section regardless of the size of your gains.

If neither of the above apply then you do not need to tell HMRC.

Money_Bags1447

phlebas192

Many thanks for reply, much appreciate it.

poseidon1

https://forums.moneysavingexpert.com/discussion/6658507/saye-shares-cgt

This Is directly related to your last post, where sensible advice was already given.

Since I assume you have still made very little headway in calculating an average pooled cost of the £200k shares you hold, it will take you an extremely long time to sell them by trying to keep within the annual £3000 exemption.

In the meantime you have already witnessed a very steep decline in the value of Diageo since their 2022 highs which no doubt adds further pain to your current predicament.

vacheron

I am in a similar situation with my employers SAYE shares.

When I purchased my shares, the curent share price was 2.2x my option price but the GGT allowance was £12,300 per year, so disposing of them all tax free would take a couple of years tops, so I kept my ISA allowance to use for other things.

Now that the CGT allowance has been neutered to £3,000 and the shares are now worth 4.5x the option price (in addition to adding more along the way). It would take me decades to dispose of them all on my own without incuring any CGT.

However, remember that if you are married then you can gift shares tax free to your spouse. They can then sell up to £3000 worth of gains using their GCT allowance if they haven't used it for anything else. You can then both do the same again on April the 6th, so that should help liquidate £12K worth of gains.

benny5

I realise this is an oldish thread, however, I find myself in a situation where I could benefit from such a 'gifting arrangement'.

Just wondering if this is a straightforward process given the shares are currently held in electronic form (iWeb/ Scottish Widows).

Any guidance appreciated.

vacheron

https://forums.moneysavingexpert.com/discussion/comment/82173677#Comment_82173677

When I did this last year my wife and I both had a Hargreaves Lansdown GIA account.

I just sent them a direct message with the names and account numbers and asking if I could transfer some.

They made me write back stating that it was a gift with no expectation of repayment, or words to that effect. Then they just did it. I think it only took a day or two start to finish.

I would imagine it could be a bit more tricky if the accounts are with different institutions.

benny5

https://forums.moneysavingexpert.com/discussion/comment/82174403#Comment_82174403

Thankyou for that.

As both of us use the same trading platform that should help. So I need to contact Scottish Widows to arrange the transfer.

I have also seen discovered additional information online in the form of;

• Update your company’s statutory records immediately. This includes the register of members and notifying Companies House via your next confirmation statement (form CS01).
• Put a written share transfer agreement in place. A properly completed Stock Transfer Form (J30) protects both parties and makes any HMRC enquiry far easier to respond to.

Did any of this apply in your circumstances?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82174434#Comment_82174434

That sounds totally irrelevant where you are holding shares in electronic form with SWSD. It is aimed at a private company with paper share certificates

vacheron

Agree with @DRS1 above. I just gave a written instruction to their advisor.

I also just found this on the HL website

benny5

https://forums.moneysavingexpert.com/discussion/comment/82174519#Comment_82174519

Really appreciate that.

I must say I find the HMRC website information slightly confusing, but then it could be just me not having any experience in this area.

Bottom line then, do I just submit a request to SWSD to execute the transfer.

Thanks again.