Selling shares and capital gains tax question.
Selling shares and capital gains tax question.
Author
Discussion

sukanya

Original Poster:

12 posts

204 months

Monday 3rd February 2014
quotequote all
Hope someone can advise.

I have shares in one company and now want to sell them. I have a share certificate. I bought the shares for 9k, The shares are worth now about 21k.

My questions are:

What is the cheapest way for me to sell them?

How do I go about the paying the CGT?

Totally clueless here as you can tell.


Many thanks for any help.

Mr Noble

6,538 posts

263 months

Monday 3rd February 2014
quotequote all
Googling the answer would probably have been quicker than composing this post.....


Anyway.....I'm on a coffee break.


Profit on shares does fall into CGT rather than income tax.

You get an annual allowance of £10,900 (this year) so assuming that you've made no other gains, I'd advise selling about £18,000 of them. You'd have to make a declaration I think, to the effect that you are admitting to having made the gain, but there won't be any tax to pay.

You can then sell the rest next year (after April 1st) and still pay no tax.


HTH

sukanya

Original Poster:

12 posts

204 months

Monday 3rd February 2014
quotequote all
Thank you for the advise. I didn't even know I had an allowance. Think il sell 2/3rds of them today.

Eric Mc

125,782 posts

295 months

Monday 3rd February 2014
quotequote all
Was it a trading company? (trading in thuis case means a running a business)

Were or are you an employee or director of the company?

Sir Bagalot

7,107 posts

211 months

Monday 3rd February 2014
quotequote all
Are you married? If so then give half the shares to other half and then you can sell at the same time.

Also check the cost of selling shares in certificate form. You may have to put them into a nominee account to get a better selling commission rate.

sumo69

2,164 posts

250 months

Tuesday 4th February 2014
quotequote all
No requirement to report gains up to the annual exemption unless the gross proceeds exceeded £42k.

If you want to sell them all and are married, the advice about transferring an appropriate quantity to your wife holds true.

David