Tradefair & Financials
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Hi all,
I would like your opinion on what to do with the following dilemma.
I currently have some money tied up in shares, that are valued at around 30k. Within the next 24 months I will be looking to cash these shares in to to use as a deposit to buy a house.
My problem is what to do with them? I have taken sometime off from work and spent it travelling and I have only been paid two months wages this financial year, so I will be entitled to a rebate. I am presently looking to go back to work, so should I sell the shares now and pay the tax on them for this year? or wait and risk paying even more when I am back in full time employment?
The other option, not sure if this will work or not is to transfer them to my brother when I am looking at selling them and let him sell them for me seeing as he is at uni... will this work?
I have not got a clue when it comes to financials or shares so any advice would be much appreciated.
Thanks
I would like your opinion on what to do with the following dilemma.
I currently have some money tied up in shares, that are valued at around 30k. Within the next 24 months I will be looking to cash these shares in to to use as a deposit to buy a house.
My problem is what to do with them? I have taken sometime off from work and spent it travelling and I have only been paid two months wages this financial year, so I will be entitled to a rebate. I am presently looking to go back to work, so should I sell the shares now and pay the tax on them for this year? or wait and risk paying even more when I am back in full time employment?
The other option, not sure if this will work or not is to transfer them to my brother when I am looking at selling them and let him sell them for me seeing as he is at uni... will this work?
I have not got a clue when it comes to financials or shares so any advice would be much appreciated.
Thanks
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Your request is not very clear, but.
Your tax liability is the disposal sum less aquisition and disposal costs. The shares will almost certainly be treated as a capital gain, you have an allowance for this tax year of 10,100. If you have gains over that, the tax liability is 18% on the gain, payable on disposal. You could sell some this tax year and some after April 5th in order to benefit from this years and next years CGT allowance. If you have a spouse, you can gift them some shares and they can dispose of them using their CGT allowance to mitigate any Capital Gains Tax. |
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Just to make things a bit clearer, I just want to know the best way to pay as little tax as possibly on them. And thought that now (seeing as I havent earned) might be the best time to do that.
I paid about 9k for them over the course of about 4 years. |
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Your personal tax allowance and CGT allowance are separate. You can't offset one against the other.
At the moment you are 'ahead' £21k. If you sell £14,600 before April 5th you will have no tax liability for this tax year. You can then sell a similar amount after April 5th, and use up next years allowable gain of £10,100. However shares go up and down and a lot can happen between now and when you actually dispose of the shares, so you might consider 'biting the bullet' and paying the tax of around £2k and selling in this tax year. |
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Ok right I understand this now a lot more clearly.
Thanks for the advise. I think I will be to sell a sum this year and then sell anouther amount after April 6th. |
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Ok right I understand this now a lot more clearly.
Thanks for the advise. I think I will be looking to sell a sum this year and then sell anouther amount after April 5th. |
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Get rid of the shares asap buy commodities and or ETFs. When you come to buy a house, prices will have fallen, the pound will have fallen but your £30,000 should be worth between £35,000 and £40,000. Shame you just missed a nice dip.
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i read somewhere if you sell shares but buy them back befoe 30 days you pay no tax on them? is that rightplease
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put it all into Gulf keystone. Just about to booooooooooom :-)
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GKP will be having a fund raising soon - and it is rumoured to be at around 60p.
Beware. |
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shares sitting at 87, will go up when the takeover ball starts to roll. joint company aint got the funds so the big boys will be watching as iraq oil is where the cash is.
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