Selling shares - tax?

[herewego9]

I have around 10k worth of company shares from a previous share save with my old employer. The value has been pretty static for a while now so I am keen to sell and put the money in a stocks and shares ISA. I'm a higher rate tax payer although still under 60k so claim partial child benefit. Would the tax bill and child benefit impact mean the isa isn't worth doing? I'm confused about what is actually be charged to liquidate the current share holding. Any advice would be much appreciated.

Is the £10k what you paid or what they’re worth?

They're worth 10k-ish, I think I paid about 3k so would it be 41% tax on the 7k profit?

As long as you haven’t made any other capital disposals that will be covered by your annual exemption of (I think) £12,700 for 22/23.

So the whole £7k gain is free of tax

Ah brilliant, thanks! I didn't realise there was an exemption before paying tax on gains.

How long have you had the shares? I think you need to have had them for a minimum period to sell tax free. Was 3 years when I worked for a company with a share scheme but may have changed.

HMRC Calculator - click here to enter all the information and it will let you know.

As PP's have mentioned, there is a separate Annual Exempt Amount (Annual Allowance) for capital gains, so you shouldn't have anything to pay.

Really appreciate the advice, thanks. I've held them for over ten years so should be fine but I'll double check.

Just make sure you sell them before 5 April. The allowance will go down to £6,000 from 6 April.

Great info, thanks so much.

Annual exempt amount - basically an extra tax perk that mainly gives well off people a lower tax bill....

Wealthy people often crystallise a 12k gain annually from their portfolio to utilise this allowance.