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O/T Any one on here know about capital gains tax........



D

Deleted User X18H

Guest
............ we are just about to sell our place and are waIting a while before we buy
We will have about £95000 in equity and plan to use the interest off it to pay rent , how will capitla gains tax affect this???
 






J

jmc

New member
Jul 11, 2003
1,270
Portslade
unless you pay it into a bond, the income from that would be tax free, but you would have to leave it there for 5 years or pay early surrender fees....

Or blow the lot on 100lb of cocaine and wait for market increases and make a killing, literally ???
 




D

Deleted User X18H

Guest
kevinsmith said:
SOMEONE CALLED KNIGHT WOULD WILLINGLY TAKE THE 95K OFF YOUR HANDS TO SAVE YOU WORRYING WHAT TO DO WITH IT?
Click to expand...

Yeah right I'll tell the missus.
 




S

Springal

Well-known member
Feb 12, 2005
25,148
GOSBTS
Hi,

Quick bit of advice needed while I do some post Xmas / pre new year admin - My work operates an employee share saving scheme where you can contribute a % of your salary every month, and buy shares in the company at a discounted price. Every 6 months they buy the shares at a discounted rate, they ‘sell to cover’ some share at your tax rate and what’s left you can either hold or sell.

You always make a ‘profit’ depending on company performance can be 15% (min guaranteed) or in recent 2 windows it’s been about 200%.

Am i right in Assuming that if I sell immediately no capital gains is due because it’s covered by the ‘sell to cover’ they do ? Capital gains would only be due if I hold the shares and sell at a later time and it’d be calculated to whatever they increase above the price on the day they are ‘purchased’ ?
 


S

Snowflake

Active member
Jan 11, 2018
176
Springal said:
Hi,

Quick bit of advice needed while I do some post Xmas / pre new year admin - My work operates an employee share saving scheme where you can contribute a % of your salary every month, and buy shares in the company at a discounted price. Every 6 months they buy the shares at a discounted rate, they ‘sell to cover’ some share at your tax rate and what’s left you can either hold or sell.

You always make a ‘profit’ depending on company performance can be 15% (min guaranteed) or in recent 2 windows it’s been about 200%.

Am i right in Assuming that if I sell immediately no capital gains is due because it’s covered by the ‘sell to cover’ they do ? Capital gains would only be due if I hold the shares and sell at a later time and it’d be calculated to whatever they increase above the price on the day they are ‘purchased’ ?
Click to expand...
That’s how I’ve always believed it works. My company is exactly the same as yours. As long as the price you sell at is not higher than the FMV on purchase day. Taxation comes through the payroll. But I defer to experts.
 


schmunk

schmunk

Well-used member
Jan 19, 2018
10,685
Mid mid mid Sussex
Springal said:
Hi,

Quick bit of advice needed while I do some post Xmas / pre new year admin - My work operates an employee share saving scheme where you can contribute a % of your salary every month, and buy shares in the company at a discounted price. Every 6 months they buy the shares at a discounted rate, they ‘sell to cover’ some share at your tax rate and what’s left you can either hold or sell.

You always make a ‘profit’ depending on company performance can be 15% (min guaranteed) or in recent 2 windows it’s been about 200%.

Am i right in Assuming that if I sell immediately no capital gains is due because it’s covered by the ‘sell to cover’ they do ? Capital gains would only be due if I hold the shares and sell at a later time and it’d be calculated to whatever they increase above the price on the day they are ‘purchased’ ?
Click to expand...
Yes, that is correct.

If you hold onto the shares, there's also the possibility of a loss calculation...
 


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