you will need to pay capital gains tax if your profit is greater than the CGT threshold.

rate is 10 per cent for basic-rate income tax payers, those on higher rates of income tax pay 20 per cent.

Capital gains below a set level, currently £11,100 per year, are tax-free.

so take the amount you paid from the amount you sell for (can factor in selling fees). If profit > 11100 you will have to pay some tax.

There are ways of avoiding this by transferring share to partner or only selling some shares.


Can someone advise me, in share saving scheme through work and wanting to get some capital, is there a limit before paying tax.
Originally posted by Vegastare

If you want to take some out before the full term then I think you may be liable to pay tax.

Different Share Save schemes have different rules, so probably best if you take a look at the Share Save scheme agreement or failing that I suggest you check with the scheme administrators or HR - they will be able to tell you if you can money out without paying tax.

More info here: https://www.gov.uk/tax-employee-share-schemes/overview

Sorry I can't be of more help as I have never taken part in a work Share Save scheme but hopefully someone on here that has or knows the rules can help answer your query (especially if they have the same employer and taken advantage of the same scheme as you).

Generally you have a £11.1k cgt annual exemption which can be set against profits on sales.

But as Ifts says some share schemes have special rules which may change this.

E.g. if you have a share incentive plan then the trick is to withdraw them from the trust just before selling so there is virtually no profit on sale (as the cost is deemed to be the value when they exit the trust).

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