capital gains tax

[whentheshithitsthefan]

husband cashed in some shares yesterday he got them via a share save thing from work, so for 5 years he saved £6000 and he cashed in at about £12000. neither of us has ever had any dealings with shares so we have o idea even slightly how much we will be looking at paying in tax...any ideas? and do we do it right now or is there a specific time we have to do it? thanks.

He can have a gain of about 11k without a CGT issue

The share save scheme should be able to answer your question. They should have a helpline or website with FAQs

work should be able to give him all the numbers
but yes, he'll need to do a CGT disclosure in his tax return by
next January
UNLESS he happened to transfer half of them to you just before sale in which case the tax free allowance is doubled

*whoosh" is correct - there is a £11k threshold before you pay any tax.

If he is PAYE he shouldn't even need to fill in a tax return to declare this gain.

The annual exemption of c.£11k will cover this and no declaration need be made as the proceeds are below reporting limits, even if he has to fill out a tax return fro other reasons. The £11k exemption is for total chargeable gains in a year, not for each asset.

Transferring an asset between spouses before a sale with a view to doubling up the annual exemptions won't work. HMRC would say that the sale was going to take place anyway and what the transferor is doing in substance is transferring half of the sale proceeds. The asset would need to be transferred months in advance of a sale and ideally some income paid on the asset to the transferee during this time.