/ 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
In tonight's Friday Night Video, we see Alex Honnold soloing Heaven 5.12d in Yosemite Valley. The route starts 3000ft above the... Read more
This streamlined, midweight thermal layer has an incredibly speedy moisture wicking ability and dries ultra fast if it gets... Read more
Climbing as a discipline offers plentiful metaphors for tackling life's obstacles - bravery, courage, climbing to... Read more
October 21, 2014 – Textile Exchange, a global nonprofit dedicated to sustainability in the apparel and textile industry,... Read more
The B.D.V. — short for Black Diamond Vertical — jacket and pants are Black Diamond’s most versatile climbing... Read more