Sharesave Capital Gains Tax
First world problem, but many finance savvy on this forum, or work in this areas, so will give it a go.
I have been putting saving into my employers sharesave scheme for the last 3 years.
If the share price falls after the 3 year timeframe you get your money back so it is risk free. Otherwise after 3 years you can claim the shares and sell if you wish to realise the gain.
The share options were bought at the beginning of COVID, so have done quite well and doubled in price (about the first time I have won in many years of doing this)
I understand this type of scheme is subject to CGT, and the CGT allowance was over £12k when I took the options out, but I think CGT allowance is £3k in the next tax year when it matures.
I have read that you can transfer to an ISA in 90 days if maturity to avoid CGT. Presumably that is the shares and not the cash from selling the shares?
Seems to good to be true that you can transfer and then sell once in an ISA and not pay tax. Anyone had a real world dealings with this?
Also it will be over £20k, so can I transfer some to my wife so it can be split across two ISAs?
Thanks in advance.
Sharesave Capital Gains Tax
Thanks to those who have responded. I will put some numbers to it which I think will help.
It is a 3 year sharesave scheme where I have contributed the maximum £500 per month.
So, I have invested £18k of my own salary after tax. Currently it is looking like it will be worth £36k when it matures given a doubling of the share price.
Can I sell my original £18k stake and £3k CGT allowance, hence £21k of shares on the day of maturity without paying tax?
And then transfer the remaining £15k shares in an ISA, and once in the ISA sell them tax free?
Or drip feed out the remaining £15k over years to keep within the annual £3k CGT allowance?
Hope this all makes sense.