Capital Gains Tax

[les1]

Hi guys,I am about to sell some shares that I have,these have been aquired from a save as you earn shceme through a company that I used to work for.I have been doing 5yr schemes and have held them as shares for the last 20yrs,so will I be paying CGT on them if I sell them all now ,approx value is �40000.

[kags]

SAYE scemes do not shelter you from Capital Gains Tax, so yes, you will be liable to CGT on the growth in value of the shares (unless they are in an ISA?). The rules for calculating the gains on shares are complicated, and you may want to get assistance from your tax office to work out the gain. There may be taper relief of up to 75% depending on the circumstances, and you have an annual exemption of �9200.

[Law Student]

Probably. But only on the capital gain.

At the end of each 5-year period you will have received the shares at a defined value. The CGT you pay now is on the difference between that and their value today.

Assuming a steady rise in value you'll pay more tax on the older shares but, as kags says, there are allowances.

Taper relief is available. If you still worked for the company you could have got 75% relief after only 2 years. As you don't work for them any longer, the maximum relief is only 40% and that's for shares held for 10 years.

Shares that you have held since before 1998 will also benefit from Indexaton Allowance.

LS