I have accrued some shares through work, about £50k in total over 25 years and want to sell them as I am buying a house but find that I will have to pay the good old tax man 40% on any amount over £11.7k profit.
Doing some basic man maths I have decided to sell £11.7k this year to keep the profit below £11.7k as I don't have the original purchase prices of the shares. I will then use the proceeds of the sales to reduce my mortgage.
I expect to do the same over the next couple of years as well.
I think I can also give some share to Mrs Driver to sell as well and if I do that then my capital gains tax bill should be zero.
So if I sell 3 x £11k and Mrs D sells 2 x £11k we should be ok in 3 years tax wise - is my understanding right?
Next time I will consider a share ISA once I figure out how they work!
Thanks, Driver
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IIRC you can sell more than the £11.7K profit as you can 'add up' the previous years unsold amount for at least a couple of years.
It will be quite easy to find out how much you paid for the shares originally through the internet.
Assets can be transferred to spouses without any tax liability.
I've done this to avoid tax liability myself, although not for a few years.
ps. Just got notification of my Lloyds bank share divi - all of 1p, not my best investment!
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>> ps. Just got notification of my Lloyds bank share divi - all of 1p, not
>> my best investment!
I recall that around 10 years ago, a financial whizz kid of my acquaintance said "Lloyds Bank? Could be worth a punt?"
They were then around £1, they haven't been near back up to that level since. I did not follow his tip.
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I recall that they were about £3.70 in 2007!
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Investigate CGT further. There are reliefs for some employee share schemes.
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Bad Tax Planning on My Part - bathtub tom
