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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15933
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I want to sell US shares in the UK. As an IBM retiree I have

Customer Question

I want to sell US shares in the UK. As an IBM retiree I have 264 shares which roughly amounts to £30,000. Which is the cheapest way to sell them and do I have to pay Capital Gains Tax, if so how much would this cost?
Submitted: 5 years ago.
Category: UK Tax
Expert:  Tony Tax replied 5 years ago.
Hi.

How long have you had the shares? What did they cost to buy?
Customer: replied 5 years ago.
I have had them over 20 years. Some were bought at £43 and others at £90. Then IBM split them so they doubled. It was an employee share scheme where you could buy a part if a share each month
Expert:  Tony Tax replied 5 years ago.
Thanks.

You will need to work out the combined cost of all the shares and deduct that from what you sell them for in order to work out the gain.

I can't help you with finding a cheap way to sell them I'm afraid but if I were you my first port of call would be my bank.

If you are a UK resident, you will have to pay CGT on any gain you make. You can make gains of £10,600 per tax year tax free so if you limited your disposals to that sum or less in each tax year, you would not have a CGT liability.

If you are married, you can transfer some shares to your spouse for them to sell in order to use their annual CGT exemption, though you might wait until the following tax year before they are sold.

There are two rates of CGT in the UK, 18% and 28%. The rate or combination of rates you will pay will be dependent on the level of your income in the tax year that you dispose of the shares.

Let me know if you have any further queries.
Customer: replied 5 years ago.

 

How do I transfer to my husband shares that are held in America?

Expert:  Tony Tax replied 5 years ago.
I can't help you with that I'm afraid. You should contact IBMs shareholder services here.