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Growth Shares Capital Gain Tax

Growth Shares Capital Gain Tax calculation

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Never dealt with shares before, could someone please shed the light on. Been working for the company and was given growth shares (options) for free, didn't pay for them. My question is when you paid income tax on your growth shares through PAYE, do you mark it as tax on gains already paid when declaring your capital gains?Thank you

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By Wanderer
27th Nov 2020 01:39

Quote:
Growth Shares Capital Gain Tax
Growth Shares Capital Gain Tax calculation

Never dealt with shares before, could someone please shed the light on. Been working for the company and was given growth shares (options) for free, didn't pay for them. My question is when you paid income tax on your growth shares through PAYE, do you mark it as tax on gains already paid when declaring your capital gains?Thank you

No.
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Psycho
By Wilson Philips
27th Nov 2020 08:14

Lift your anonymous veil and I’ll answer.

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Replying to Wilson Philips:
Psycho
By Wilson Philips
27th Nov 2020 09:55

It's not a case of accounting for the income tax paid. In very broad terms the amount on which income tax was paid becomes the CGT base cost.

Eg shares worth £10 given for nothing and sold for £25. Income tax paid on £10 so capital gain is £15. That's the vanilla version - life becomes more complicated if there are restrictions etc to think about.

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By Tofa4ka
30th Nov 2020 11:38

Thank you for your answer. Am I correct thinking if via PAYE I had £60k as UKequity and it was taxed through PAYE and I sold my shares for £100k ( this hit my bank account) does it mean that I pay Capital Gains tax on £40k? What type of restrictions might be there? Sorry, I am new to it but would like to learn. thank you for help

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By Tofa4ka
30th Nov 2020 11:40

I just would like to add that £60k was paid via PAYE and also my wage and additional £100 from sale of shares on top of this £60K that were processed via PAYE

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Replying to Tofa4ka:
Psycho
By Wilson Philips
30th Nov 2020 13:25

I would respectfully suggest that Any Answers should not be used as a substitute for formal technical training.

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By Paul Crowley
27th Nov 2020 09:33

.

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