shares

[strangey]

Could anyone tell me what the tax rules are for selling shares, I know this isn't strictly a property issue, but I am using this money for part of a deposit, Are you taxed when you sell a small amount of shares if so what are the rules. By small i mean £6000 . thanks for your help :)

[welshgold]

Could anyone tell me what the tax rules are for selling shares, I know this isn't strictly a property issue, but I am using this money for part of a deposit, Are you taxed when you sell a small amount of shares if so what are the rules. By small i mean £6000 . thanks for your help :)

under u.k taxation rules,if these shares are the total of anything you sell which would be subject to capital gain in any one tax year, you would not be liable to any tax charge, you would have to make a capital gain on all disposals in excess of £8800 -in tax year 2006/2007

[Tax Accountant]

Could anyone tell me what the tax rules are for selling shares, I know this isn't strictly a property issue, but I am using this money for part of a deposit, Are you taxed when you sell a small amount of shares if so what are the rules. By small i mean £6000 . thanks for your help :)

Generally speaking, you need to work our the capital gains (ie profits) on sale of capital assets such as shares and properties. To do this, you start with the sale value and take away the original cost.

If this is less than £8,800, you do not normally need to look any further. The gains are fully covered by your annual exemption for capital gains tax.

If the gains are over £8,800, there may be other reliefs and allowances available which may reduce your gains further.

In your case, if your total sale proceeds in the whole of the tax year is less than £8,800, the chargeable gains will be less than this figure and there is no capital gains tax to pay.

Ramnik

[strangey]

Thanks, that is exactly the information I needed to know. I had done some homework on this before i posted the question and on some other web sites the figure differed from £8800, sometimes to as much as £23000, I know now that £8800 is right, but why are there differing amounts :)

[Tax Accountant]

Thanks, that is exactly the information I needed to know. I had done some homework on this before i posted the question and on some other web sites the figure differed from £8800, sometimes to as much as £23000, I know now that £8800 is right, but why are there differing amounts :)

Each taxpayer is allowed tax free capital gains of £8,800 for the current tax year.

Maybe the figure of £23,000 was mentioned in a different context or was a rough figure for three joint owners who would each have benefit of the annual exemption.

Ramnik

[strangey]

Thankyou for your help Tax Accountant, it is very appreciated:)

[Tax Accountant]

Thankyou for your help Tax Accountant, it is very appreciated:)

You are welcome.
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Ramnik