Selling Shares

[888sally888]

Do you have to pay tax when you sell shares?

[LazyGun]

I am certainly not an expert, but I believe that any money derived from the sale of shares would be classed as taxable income by the Inland Revenue, unless the shares are from a company share scheme, which often can be tax exempt.

It is left to you whether to declare the income or not though.

[BigMac]

Assuming you are in the UK:

• Yes, if you have made a capital gain, subject to some exceptions, such as the company share scheme mentioned before.


• You have an annual Capital Gains Tax (CGT) allowance of about �7k (you'll have to check the exact amount) so if you have made a gain of less than �7k there will be no tax to pay.


• There is also a tapering (ie reducing) tax rate on shares in AIM companies.


• No, if you are selling at a loss.

Best solution is to ask your accountant, if you have one, or include the information in your tax return and the Inland Revenue to work it out for you.

[smoker1]

Yes,if you are silly enough to declare it.

[dzug]

The exemption from CGT is now up to �8800 for the current tax year.

The sale of shares does not give you income, so there is no income tax on the proceeds, just capital gains tax on the profit you have made on them over and above the annual limit.