/ advice needed on capital gains tax and shares
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.!
Annual capital-gain allowance before paying tax: £10,600. Gain per share = 225-68 p. Number allowable = 10600/(2.25-0.68) = 6751 shares.
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 ?
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.
I guess you mean the amount you can "sell" without incurring CGT but yes.
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...
Elsewhere on the site
A pack designed for year-round ascents. Super light, flexible, strippable and seasonally versatile you can rely on this perennial... Read more
Pete Whittaker has flashed the 32 pitch route Freerider 5.12d on El Capitan in Yosemite Valley over three days,... Read more
Every so often you meet someone in climbing that makes you take a step back. Someone with a fire in their eye, passion in... Read more
Manchester Climbing Centre is showing Reel Rock’s Valley Uprising on Tuesday the 11th of November at... Read more
Nuts, wires, stoppers, chocks, wedges, whatever you want to call them, have been around for a long time. Initially made from... Read more