Selling Company Shares

Tattie63

I have company shares since over a twelve yr period.I have been retired for 4yrs.

How much of these shares can I sell without paying tax in a year.

I have a company pension that I pay tax on.

Keep_pedalling

To pay no CGT you can sell no more shares than it takes to realise a gain of your annual allowance of £3,000. So for instance if you have 10,000 shares that cost you £1 each and they are now worth £4 each you can sell 1,000 without exceeding that allowance.

poseidon1

OP, you asked virtually the same question 2 years ago and were provided with detailed guidance in the thread below. Have you still made no progress in selling any shares since then to use the CGT exemptions of you and your wife?

https://forums.moneysavingexpert.com/discussion/6548791/is-it-possible-to-sell-shares-and-transfer-to-isa

Tattie63

My memory is clearly gone.Also not much knowledge with computer stuff etc.Sorry

Tattie63

Was also told that company shares were tax free,after holding for 5years.So a bit confused.

poseidon1

It sounds like you originally got the shares via an employer Save As You Earn scheme. The shares could have been tax free when emerging from the scheme but that would have needed you to transfer the shares to a stocks and shares ISA within 90 days of receiving them. Clearly you failed to do so at the time so you are now where you are.

If you don't already hold your shares in digital form ( ie you still have paper share certificates), your first action should be to set up an investment account with one of the investment platforms such as Hargreaves Lansdown. Other cheaper platforms are available, but HL have very helpful customer services to guide you.

Once account is up and running use the platform to convert your shareholding to a digital holding which will greatly facilitate future share sales and transfers of half your holding to your wife to use her CGT exemptions.

A note of caution, ensure once your shares are held digitally on the investment platform you manually change the book value of your holding showing on their systems back to your original purchase cost which understand was £1.92 per share. This ensures you have easy visibility of how many shares to sell to generate your £3,000 annual tax free gain.

As well as helping you release tax free profits from your share holdings, engaging with the above process does assist in keeping the 'grey cells' ticking over, or at least it does for me.

One last point, if you are receiving dividends exceeding £500 per year you are aware these are potentially taxable, and the onus is on you to disclose to HMRC? Another reason to transfer 50% to your wife.

Tattie63

Thanks for the information.My shares have always been digital with EQ Shareview and my wife has 50% of my shares.

Got a appointment with WPS advisor to assist me.

But that’s great information to receive.

Thanks