Full ISA Guide Discussion Area

BeckyMellor225

I have been doing a company share SAYE for 3 years and it looks like the profit (market value - option cost ) is going to exceed the capital gains tax allowance of £10,900. I am trying to work out what to do for the best to avoid paying 28% of this to HMRC.

I think my options are:

1. buy shares on the release day and sell immediately but get hit with tax bill of over £3k. Not good.
2. buy shares, sell enough to stay under the CGT allowance and 'give' the rest to husband, he can then sell them using his CGT allowance.
3. buy shares, sell enough to stay under the CGT allowance and put rest in share ISA. Is there then a minimum time they need to stay there before I can then sell them without CGT hit.
4. is there something more sensible I could do - I want to liberate the cash but in the lowest tax way so not in a major hurry

It's all a bit of a mystery - I have never made any money on shares before. Thanks in advance

Tylerama1

mafield wrote: »

Does no one ever bother to read even part of the thread, which would amply answer probably 95% of all questions posed.

Depends if you have time to read every page. I have a question about transferring an ISA and whether I can then open a brand new one as well, or not.
The answer probably exists in the transfer ISA area, but I do not have time to read all (currently) 136 pages..

innovate

Tylerama1 wrote: »

Depends if you have time to read every page. I have a question about transferring an ISA and whether I can then open a brand new one as well, or not.

That particular question has been answered dozens, if not hundreds, of times on this board.

So you expect people to answer the same question for the umpteen-hundredst of time, rather than spending your own time to do your own research? I suspect your answer is yes. Well, I for one am not playing.

EDIT: just seen you posted on another thread that you don't have time to find the answer to your particular questions. Guess what, I don't have time to post again what I already posted, and that is probably true for many other people, too.

I wouldn't mind answering your individual questions if they were anything but very basic ISA questions. As it is, very little research will provide you with the answers you need. What's more, your own research will most likely ensure you actually understand the answers, and allow you to step up your savings, and may be even investments, activities. I.e. doing your own research is in your own interest.

See also my signature.

(and rant over, lol).

innovate

BeckyMellor225 wrote: »

I have been doing a company share SAYE for 3 years and it looks like the profit (market value - option cost ) is going to exceed the capital gains tax allowance of £10,900. I am trying to work out what to do for the best to avoid paying 28% of this to HMRC.

I think my options are:

1. buy shares on the release day and sell immediately but get hit with tax bill of over £3k. Not good.
2. buy shares, sell enough to stay under the CGT allowance and 'give' the rest to husband, he can then sell them using his CGT allowance.
3. buy shares, sell enough to stay under the CGT allowance and put rest in share ISA. Is there then a minimum time they need to stay there before I can then sell them without CGT hit.
4. is there something more sensible I could do - I want to liberate the cash but in the lowest tax way so not in a major hurry

It's all a bit of a mystery - I have never made any money on shares before. Thanks in advance

Have you looked at increasing your pensions contributions to bring your taxable earnings back down to the basic rate tax layer?

preciousillusions

I have started using an ISA account for the first time just recently. Just a small question - I understand the cash deposit limit for this year is £5760, but just wondering, at the end of the tax year, do you have to open an entirely new ISA account (whether you have filled the $5760 quota or not, I doubt I will save quite that much) or can you just keep adding to the same account but obviously with a refreshed deposit limit? Just wondering if the existing account sort of gets frozen after the end of the year or can be kept open? Thanks so much for any replies/help!

innovate

preciousillusions wrote: »

at the end of the tax year, do you have to open an entirely new ISA account (whether you have filled the $5760 quota or not, I doubt I will save quite that much)

yes. This is what you would normally do because the interest rates on new accounts are likely to be more attractive. Often people also transfer (through official transfer route) their existing ISAs to a new provider, for the same reasons.

EDIT: Actually, can I correct this on re-reading: in most cases, you don't have to open a new ISA but you most likely would.

preciousillusions wrote: »

or can you just keep adding to the same account but obviously with a refreshed deposit limit?

You can do that, too. But see above

preciousillusions wrote: »

Just wondering if the existing account sort of gets frozen after the end of the year or can be kept open?

They won't get closed automatically but may go dormant for new deposits. However, you are not likely to want to keep much (or anything) in old ISAs because generally the interest rate after a year or so will be pants. A formal ISA transfer (through a provider offering better rates) is what most people choose. The old ISA then gets closed unless you ask for a partial transfer.

preciousillusions

Ah thank you very much! So transferring an old ISA balance to your new ISA doesn't effect the tax free allowance? I presume not .

badger09

preciousillusions wrote: »

Ah thank you very much! So transferring an old ISA balance to your new ISA doesn't effect the tax free allowance? I presume not .

You presume correctly

The annual tax free allowance refers only to new money subscribed (deposited/paid in).

If you want to transfer existing ISA savings, make sure you use the correct process. This is always handled by the new ISA provider.

dead_twice

i have 4000 in a isa from tax year 2012-2013 do i now need to start a new isa for the new tax year to get the most benefits or is it simpler than i am making it seem.

innovate

dead_twice wrote: »

i have 4000 in a isa from tax year 2012-2013 do i now need to start a new isa for the new tax year to get the most benefits or is it simpler than i am making it seem.

How much interest does your 2012-13 ISA attract? Can you still make deposits into this ISA (what do the T&Cs say)?

Can you get better interest for your 2013-14 deposits if you open a new ISA?

Can you get better interest for your existing ISA by asking a new provider to transfer the ISA?

Check post 1 in this thread: https://forums.moneysavingexpert.com/discussion/401374