Cashing in Shares

[Epiphany]

Does anyone know what kind of taxes and charges are involved when cashing in shares? And how does it relate to your earnings?

[oE]

I think its related to capital gains tax. If you profit over a certain threshold in terms of profit you make then you are lible for tax on the profit.

oE.

[Justcracked]

As far as I am aware you will pay tax on them only if you make more than £8k profit (the limit for Capital Gains in a year)

I think there may be some stamp duty as well (in my head I think a £5 unless the shares are for a lot; over £100,00 possibly)

You'll prob also have to pay whoever it is selling them for you (eg: a broker)

HTH

[Andy Poobar]

You will have to pay whoever you sell them through, With HSBC it is about £35 in a bank and 1.5% of the value.

It's only £11.00 online though. You only have yo pay capital gains tax over a very big threshold.

[satzzz]

I thought capital gains was anything over 8k profit and at that it was 40%

[beansontoast]

www.moneysavingexpert.com is a good source of advice. I had a look into it about a year ago. Here's a more relevant link: a more relevant link

p.s. some of mine are doing this

[baronvon]

it depends on how you bought the shares.

EG in work I do an ESOP, I pay £125 p/month and the company match it. They buy shares in the company at share price every 1st of the month. Then after 5 years I can take 1years shares at current share price IE Share price in Dec 2010 (if 5 years today) with NO TAX regardless of profit.

You can then do 2nd years in Dec 2011 etc etc.

However if I wait till Dec 2015 I can take all 5 years 2005 - 2010 in one go with NO TAX regardless of profit

I know folk in work who have done it for 5 years......

£7.5k investment (12 months £125= £1.5k then..... £1.5k x 5 years)

Looking at share value of £25k......... £17.5k profit with NO TAX.

Anyway..................point being.... it depends on how you bought them.

THE BARON

[Justcracked]

I thought capital gains was anything over 8k profit and at that it was 40%

Hey, it's £8,500 up to 5 April 2006. You also get charged at whatever level of tax you are at. eg:

<table style="width: 352px; height: 103px;" border="0" cellpadding="5" cellspacing="1"> <tbody><tr bgcolor="#ffffff"><td valign="top">Starting rate: 10% </td> <td valign="top">

£0 - £2,090

</td> </tr> <tr bgcolor="#ffffff"> <td valign="top">Basic rate: 22%</td> <td valign="top">

£2,090 - £32,400

</td> </tr> <tr bgcolor="#ffffff"> <td valign="top">Higher rate: 40%</td> <td valign="top">

over £32,400

</td></tr></tbody> </table> Whatever your earnings are in then you get charged that amount.

HTH