Complicated question : selling a small amount of shares that won't trigger CGT.. Going into isa.

[EDUCATIONCPD]

So, I'm selling 4 grand worth of shares, I want to get them from computershare into my isa.

I've been told if I sell them and buy the same amount of shares into my isa that's fine and won't be called "income" for my tax return.

However, do rhe shares need to go straight into the isa via some process or can the proceeds go into my bank and then into my isa?

I'm scared of falling foul of some tax trip wire etc.

You're welcome.

Worth remembering that as long as you earn less than the personal allowance you can earn £3,000 of income from paid work and not be charged tax - this is just the same with capital gains. They are much more interested in (say) someone who buys a second home for £200k and sells it £800k than someone who just has a small number of shares.

@snowlaser you have confused me again, do you mean tax on the share? I earn just over 12 grand threshold. And get smaller rental income on top.
All below 20 grand.

As in income form non paid work

Sorry to confuse you - it was just your comment "I guess I find it hard to believe they would allow me to suddenly have say 3 extra grand and not charge me" ... I was trying to draw a comparison with tax allowances for paid work - if your only income from work was £3,000 in a year you wouldn't pay tax on that either is what I was trying to say.

However, the tax payable on selling shares is not related in any way to the income that you earn. When you sell shares the tax is only payable on capital gains i.e. how much the shares have increased in value since you bought them.

If the capital gains for a tax year are less than £6,000 then no tax is payable at all. Clearly if the amount you are selling them for is only £4,000 then there can't possibly be more than £6,000 capital gains, so you have no tax to pay.

You will have to pay capital gains tax on the sale

@snowlaser.
Thank you! It's all felt so complicated but tis done now.

I appreciate the help. 💐💐