question about cgt

Ilikeitblackplease

Ilikeitblackplease

Ilikeitblackplease

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i invested 60k in shares I make 67k in shares total 127k now if I take out the 60k that I originally used and left 67k in shares( the profit) would I have to pay cgt even thou I haven't taken out the profit as the profit has not been realised? I would still have my allowance of 11k so in theory can i take out 60K original money plus 11k tax free leaving 56k in shares?
 
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Are these inside a tax-free wrapper such as an S&S ISA or a SIPP ? If so, then there is no CGT liability.

If they're not wrapped, then you have to pay tax on the profit made at the time of the sale. So if you want to completely avoid CGT, you need to sell the shares off over a number of years so that your annual profit is under the 10K threshhold..
 
It's not very clear from your post what you mean, did you invest £60k in shares which are now worth £127k?

Then yes you would have a gain on disposal of £60k worth of shares. Generally your base cost would be calculated on a pro-rate basis so your gain would be £60,000-(£60,000*(£60,000/£127,000)) = £31,653. You could offset any unused annual exempt amount currently £11,100 against your gain.

Unless as already mentioned you have invested through a tax free wrapper.
 
you would base it on your average price paid, then any profit will come under cgt and you have to fill out a tax form after the tax year is over.
 
peterwalkley said:
Are these inside a tax-free wrapper such as an S&S ISA or a SIPP ? If so, then there is no CGT liability.

If they're not wrapped, then you have to pay tax on the profit made at the time of the sale. So if you want to completely avoid CGT, you need to sell the shares off over a number of years so that your annual profit is under the 10K threshhold..
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No they are not in isas, but the profit has not been touched,I thought you only pay cgt if you sell all, but Im not selling the whole portfolio, I'm just extracting what I put in at the start. You don't pay cgt on your original capital.
 
matdom said:
No they are not in isas, but the profit has not been touched,I thought you only pay cgt if you sell all, but Im not selling the whole portfolio, I'm just extracting what I put in at the start. You don't pay cgt on your original capital.
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The inland revenue won't see it that way. Ask them.
 
Currently you haven't made any profit as you haven't sold anything, as soon as you do, they look at amount sold, versus amount retained in value, and compare it with your original investment.
You can extract profit each year up to your CGT limit thereafter you pay CGT.

-edit

It isn't the bookies, where you setup an account with £100, make £100, extract your original £100, and pay on with just your winning for no overall net loss.
 
matdom said:
No they are not in isas, but the profit has not been touched,I thought you only pay cgt if you sell all, but Im not selling the whole portfolio, I'm just extracting what I put in at the start. You don't pay cgt on your original capital.
Click to expand...

you're not paying CGT on your original capital

you're paying CGT on the gain you've made - you paid X for some shares - you chose to sell some of them at Y price... if Y is greater than X then you've made a gain which might be subject to CGT if you go above your annual limit.

You keep the other shares... maybe the price drops down to the same price you paid for them, you sell them and you're not subject to CGT on that.
 
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