Capital gains on shares

billy78

Apologies in advance for my naievity, but i'm wondering about what consequences I face with regards to CGT when I eventually come to sell my shares - quite a way down the line.
At the moment i'm building a portfolio through halifax sharebuilder, the portfolio in total is worth approx. 1000 GBP. (cant find pound sign on my handheld!). The 1000k is predominantly spread between 4 stocks.
The intention is to carry on as I currently have been through drip feeding the portfolio on a monthly basis, over 20 or so years.
Can anyone enlighten me as to the problems I may face when I finally come to cash in my shares, or what I can do to reduce any threat?
Thanks, Bill.

[Deleted User]

Hi,

as you're saving through the halifax sharebuilder, why not think about the Stocks and Shares Isa.

billy78

Hi,

Is it possible to transfer between the two, or would I need to set up an S&S Isa and divert some of the funds there instead?

Bill

[Deleted User]

Hi,

I am presuming that you don't already have an Isa.

If so, you have only got until 5th April to use up this tax year's Isa allowance of £7000, the new allowance for next tax year will be £7200. As you are already with Halifax I should think that if you get things started now, you could utilise this year's Isa allowance and then start afresh next tax year. I would call today if you thinking about it as time is running out, having said that, I still have to make my mind up where to put my £7K for this year, always leaving it to the last minute, bit wary just now, with the market being a bit jumpy.

taxdoctor

Frugal is quite right,

If you can roll up your shares in an ISA and this will negate any tax issues.

In answer to your question though if things stayed the same you would be charged on any gain made when your shares are sold.

The basic calculation in Selling price - Purchase price = Gain

If you did not sell any other capital items in that particular tax year then you would have your capital gains exemption to put against this gain.

The annual exemption currently stands at £9200 and rises by a few hundred pounds each tax year. In effect this means you can make a gain (profit) of this amount before paying any tax on the sale.

Hope that helps.

Hugeass304

There are charges to be considered though when you put them in an ISA. I'm not sure how much the Halifax charge for administering your ISA

King_Weasel

And don't S&S ISAs only take new investments? Meaning you'd have to sell and re-purchase?