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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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, I have been putting money into a PAYE share scheme with

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Hi, I have been putting money into a PAYE share scheme with my workplace for the past three years. I have accumulated £9000 and I am eligible to gain 9890 shares bought at a price of £0.91. The current share price is £3.66. These shares are exercisable on May 1st (i can sell some and keep some).
How many shares roughly can I sell before I get taxed. Or how much profit can I make before tax?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello and welcome to the site. Thank you for your question.

You can make a gain of upto £11,100 before you pay capital gains tax. Based on prices given, you are making a gain of (3.66-0.91) £2.75 per share to be sold.

If you were to sell 4,036 shares your gain would be £11,099 and this figure is covered by the gains allowance. You would pay no CGT on sale of upto 4,036 shares.

You will be left with 5,854 shares.

If the gain per share was

£2.85 then sell 3,894 shares
£2.80 then sell 3,964 shares.

Higher gain per share means less shares to sell and vice versa.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.

Hi,

Thanks for your initial answer; it was as i assumed but would rather be sure first.

If i was to sell all the shares how much would i get taxed?

And if i sold the part and stayed under £11,100 profit, could i then put some of the leftover shares into an ISA? or is it one or the other?

Expert:  taxadvisor.uk replied 1 year ago.
Bradley, thank you for your reply.

Gain from sale of 9,890 shares would be (9,890 x 2.75) £27,197
gains allowance £11,100
Chageable gain (27,197-11,100) = £16,097.

CGT rate 18%, 28% or a combination of both, depending on total taxable income in the year of sale... worst scenario - CGT (16,097 x 28%) £4,507.

You could sell part holding and transfer the leftover shares in ISA.. More information on it is here

https://www.gov.uk/tax-employee-share-schemes/save-as-you-earn-saye


I hope this is helpful and answers your question.


taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4807
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 1 year ago.
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