Selling shares?

As a general rule, if you sell shares for more than you paid for them, any profit you make will be chargeable to Capital Gains Tax (CGT).

Shares and investments you may need to pay tax on include:

  • shares that are not in an ISA or PEP
  • units in a unit trust
  • certain bonds (not including Premium Bonds and Qualifying Corporate Bonds).

CGT will not usually be payable if you give shares as a gift to your husband, wife, civil partner or a charity.

You also do not pay Capital Gains Tax when you dispose of:

  • shares you’ve put into an ISA or PEP
  • shares in employer Share Incentive Plans (SIPs)
  • UK government gilts (including Premium Bonds)
  • Qualifying Corporate Bonds
  • employee shareholder shares – depending on when you got them

The amount of CGT payable will depend on your other earnings in the tax year. You may also be able to claim other reliefs if you are selling shares in a business that you control.

Finally, we are all entitled to make tax-free capital gains each tax year. For 2019-20, the CGT annual exemption is £12,000.

Latest Blog
14
Nov

The benefits of Furnished Holiday Lets

Most buy-to-let property is let on short leases to a single tenant. The income from r...

Read More
12
Nov

Higher National Living Wage rates

Businesses that have a significant number of workers who are paid at the National Min...

Read More
07
Nov

Employing someone at home

Believe it or not, HMRC will consider you are the employer of a nanny, housekeeper, g...

Read More
05
Nov

Tax Diary November/December 2019

1 November 2019 – Due date for Corporation Tax due for the year ended 31 Januar...

Read More

CONTACT SIMON COOPER