/ advice needed on capital gains tax and shares

This topic has been archived, and won't accept reply postings.
colina - on 26 Nov 2012
friend of mine bought some shares at 68p (now valued at 225p)wants to know how many shares he can sell without paying capital gains tax.
would be intesting to know how to work this out as share price can change daily.
moderater might not think this is related to rock climbing however my friend is buying a set of hexes with some of the money.!
Coel Hellier - on 26 Nov 2012
In reply to colina:

Annual capital-gain allowance before paying tax: 10,600. Gain per share = 225-68 p. Number allowable = 10600/(2.25-0.68) = 6751 shares.
colina - on 26 Nov 2012
In reply to Coel Hellier: Thankyou coil.
are you saying to work out tha amount of shares... you calculate the difference between the buying price and selling price (1.57) and then divide that figure into 10600 which gives you the max amount of shares you can buy without incurring cgt.
i think thats what you are saying yes ?
AJM - on 26 Nov 2012
In reply to colina:

Yes, although it might be worth checking whether you can index the purchase price for inflation - I don't know, but if so it will increase the amount you can sell because the "gain" is split into some due to inflation, which is not chargeable, and some due to a capital gain, which is. Not my area of speciality, talk to someone who really knows.
krikoman - on 26 Nov 2012
In reply to colina: yes he is
Professor Bunsen - on 26 Nov 2012
In reply to colina:

I guess you mean the amount you can "sell" without incurring CGT but yes.
ads.ukclimbing.com
Skyfall - on 27 Nov 2012
In reply to colina:

Yes its simple to calculate the capital gain, proceeds less cost (using share price). Then work out how many shares your friend has to sell to fill utilise his or her capital gains allowances. As above.

There is no longer any capital gains indexation allowance (completely abolished for individuals in 2008).

If your friend is married, he or she could consider transferring some shares between them before a sale so as to use both their allowances. Oh no, that'll get the moral crusaders against tax avoidance up in arms...


This topic has been archived, and won't accept reply postings.