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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My partner has sold some company shares, bought through

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Hi my partner has sold some company shares, bought through a share saver scheme, we are using this for a deposit on a flat. He purchased the shares for £7000 through his wages and has sold them for £24,450 . He earns £24,000 a year. can someone tell me what we will owe in capital gains tax please
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Was this a Save As Your Earn scheme?
Customer: replied 1 year ago.
not too sure, he had to commit a set amount from his wages for 5 years and at the end of the term could buy the shares at a set price?
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Hi again.
It's almost ceertainly an SAYE sheme. The gain will be £17,450 (£24,450 - £7,000). The first £11,100 will be tax free (the CGT annual exemption) assuming the shares were sold in the current tax year, leaving a net taxable gain of £6,350.
There are two rates of CGT, 18% and 28%. The rate or combination of rates that your partner will pay will be dependent on the level of his income in the tax year that he sold the shares. One of the following scenarios will apply for 2015/16:
1 If the sum of your partner's income and the net taxable gain in 2015/16 is £42,385 or less, then all the taxable gain will be charged to CGT at 18%.
2 If your partner's income alone in 2015/16 is £42,385 or more, then all the taxable gain will be charged to CGT at 28%.
3 If your partner's income alone in 2015/16 is less than £42,385 but greater than £42,385 when the net taxable gain is added, then part of the net taxable gain will be charged to CGT at 18% and part at 28%.
I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
He has just sold them so my understanding is that his salary for the year £24,000 plus the gain of £ £6,350 is less than £
42,385 so he should have to pay 18% on the £6350 which should equal a CGT bill of £1143 is that correct?my next question is do I have to wait until the end of the tax year to pay this bill? can we fill a self assessment form in to pay the bill asap? we are trying to budget for moving and decorating costs so the sooner we can pay this the sooner we will know what we have left from our savingsthanks
Expert:  TonyTax replied 1 year ago.
That's correct.
The CGT will be payable on 31 January 2017. You could buy a certificate of tax deposit or a bank bond if you wish to put the tax out of easy reach. Take a look here for information on CTDs:
https://www.gov.uk/guidance/certificate-of-tax-deposit-scheme
Customer: replied 1 year ago.
we will be notified of the amount due, or will we need to declare it to HMRC and if so which forms will we need?Thanks
Expert:  TonyTax replied 1 year ago.
Your partner will need to dislcose the gain and any other gains he makes in 2015/16 in a 2016 tax return. He can register for self-assessment online here:
https://www.gov.uk/government/publications/self-assessment-register-for-self-assessment-and-get-a-tax-return-sa1
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