Capital gains tax :how to work it out from shares inherited please!

[Autumngoldleaf]

Miracle if anyone answers this.

So I inherited some shares, I want to sell them at what point do I need the share price? The day of the death? The day probate went through?

Will the sale affect my tax return and push up my income tax this year and possibly trigger student loan payments. I want to off load them to pay for a kitchen refurb
.

Or would I be better off selling them in installments? And borrowing the money from elsewhere?

You'd calculate capital gains tax on the valuation at date of death. It depends on the amounts if it would be better to sell in instalments

Valuation at date of death however if they haven't been transferred into your name yet pay solicitor to cash in on deceased name.

Have you used up your £12,300 allowance this year, if not you will have that and then in April another £12,300 allowance

No I've not used any capital gains tax at all this year or any year... Will selling raise my income and possibly trigger student loan payment?

(been in my name for about four years)

Do I even have to declare selling them then I wonder? Its about 5 grand.

Yes as PP say, CGT will be 20% of the gain where the Gain is the difference between the share price on the day they were transferred to you and the price at which you sell them I think.
But you can avoid the CGT by keeping below the annual £12.3k allowance mentioned above and selling some each year if you prefer.
Also bear in mind that Rishi may yet put up CGT in future years.
A nice problem to have though!
Good luck!

It's only 5 grand (only in context of the threshold) so do I need to declare it at all on tax return

@Autumngoldleaf

It's only 5 grand (only in context of the threshold) so do I need to declare it at all on tax return

No you don’t

Oh!!

DH has some shares and he always sells well below the CGT threshold and has never declared on a tax return, his normal tax is PAYE though, just make sure you keep any documentation from the sale for the 6+ years or whatever it is for tax stuff.

Thank you

I'm also wondering if I have to declare for student loans (old style)
...

Looks like if you have more than £2000 a year in unearned income you have to declare it, I'm not sure though if this means the whole value of the shares or just the profit, unearned income looks like it is also any dividends you get from the shares and savings interest, maybe someone will come on who knows more, it all looks a bit complicated.

You might get more replies if you ask MNHQ to move this to 'money matters' as it will drop off chat quite quickly

Proceeds from a share sale won’t count as unearned income. That would be the dividends only. So it won’t have an impact on your student loans.

No I don't get any dividend only reinvest the shares.

Get the probate values from the solicitors. There used to be a rule on probate valuation called quarter up! But I qualified in the early 90s and don't do IHT now.

Kezzie there is no solicitor