I've recently been made redundant and have been granted lots of shares. The issue I have is that some are profit shares, some are Buy as you earn and some are Save as you earn scheme shares. I know my allowance of profit is £8800 for the year, but how much can I sell without the tax man querying my sale? Would it be safer to sell the allowance amount each year and stay safe?
2007-03-01 23:28:16 · 4 answers · asked by nickyboyzuk 1 in Business & Finance ➔ Taxes ➔ United Kingdom
You need to find an accountant who will give you half an hour. Computing the gain on shares acquired the ways you have is not as simple as when you sell shares bought in the market. If you keep your sales below the CGT allowance you will have no problems but, as I am sure you are aware, you can have proceeds greater than 8,800 and still not pay tax.
The thing you have to know is what your base cost is for the shares you want to sell. If the number of shares or options is significant, a CA is going to be a worthwhile investment. It need not cost much.
2007-03-01 23:37:49 · answer #1 · answered by skip 6 · 1⤊ 1⤋
You have answered your own question - if your gain in any one year is less than £8800, then there is no CGT. The number of shares you can sell in order to keep your gain within that limit depends on the sale price of the shares and their cost/value on aquisition and only you know what that is.
2007-03-02 07:39:28 · answer #2 · answered by fengirl2 7 · 1⤊ 0⤋
Its not how many so much as how long you've had them and what your ex-companies policy is. I used to work in Tesco, and I had to hold my shares for 5 years to get them completely tax free.
Check your documentation that you got from your old employers to see hows the shares progam works.
2007-03-02 07:34:30 · answer #3 · answered by Bloke Ala Sarcasm 5 · 0⤊ 0⤋
Sounds as if you have shares with Tesco?????? I think it's £50.000 you can sell.
2007-03-02 07:33:03 · answer #4 · answered by Margaret 5 · 0⤊ 1⤋