Capital gains tax

[Mick100]

Any one know if we are forced to sell our shares in the take over, will we be liable for capital gains tax. I still have the original ones and I brought some in the share save scheme straight out of my pay weekly

[yellowbelly]

Any one know if we are forced to sell our shares in the take over, will we be liable for capital gains tax. I still have the original ones and I brought some in the share save scheme straight out of my pay weekly

Not according to these (as long as you've left them in the employee schemes) from .gov.uk, last paragraph:

Share Incentive Plans (SIPs)

This gives you the option to regularly save and buy shares.

If you get shares through a Share Incentive Plan (SIP) and keep them in the plan for 5 years you will not pay Income Tax or National Insurance on their value.

You might have to pay Capital Gains Tax if you sell the shares.

You’ll not pay Capital Gains Tax on shares:

sold, if they were kept in the plan until the point of sale
transferred to an Individual Savings Account (ISA) within 90 days of taking them out of the plan
transferred to a pension, directly from the scheme when it ends

and https://www.taxinnovations.com/business ... e-schemes/

Share Incentive Plans (SIPs)

Employees can receive up to £3,000 of Free Shares per year with no income tax or National Insurance Contribution (NIC) consequences, if the shares are drawn after 5 years. They can also use up to £1,500 of those dividends per year to buy new shares, known as Dividend Shares, and any dividends so used are also free of income tax if the shares are held for 3 years.

An employee can also buy up to £1,500 of “Partnership Shares” (Max 10% of salary) each year and obtain tax relief on the purchase. The employer may issue up to 2 additional free “matching shares” with any partnership shares purchased.

The increase in value between withdrawal from the scheme and sale of the shares is chargeable to capital gains tax (CGT). Therefore CGT can be avoided by the employee by leaving the shares within the scheme until immediately prior to the sale.

DYOR of course with anything financial!

[BeamishStout]

Any one know if we are forced to sell our shares in the take over, will we be liable for capital gains tax. I still have the original ones and I brought some in the share save scheme straight out of my pay weekly

I was also wondering about this today having seen the news. I actually left RM back in May 2018 (seems like yesterday ) and kept hold of the shares inc the added ones I puchased via the SAYE scheme. As a result of leaving, the free shares were transferred out of the SIP into the RM Nominee Share Service (where the SAYE shares resided). I did find a letter showing the breakdown of shares transferred out of the SIP. In it, the value of each share (for CGT purposes) transferred out was 598.8p/share and goes on to state 'In the event that you choose to sell some or all of these shares at a later date, this value should be used as the base cost to calculate any gain you may make which xould be liable to CGT.' Given that the take-over share price is what circa 370p/share I therefore believe that in my circumstances the free shares allocated to me will not be subject to any Capital Gains. As for the SAYE shares they were worth at 424p when the account was opened so again with these shares no Capital Gains have accrued.

Given the fact that dividends have been pitiful over the last few years, I'm glad to get shot of them should this takeover get the green light.

[RobertT]

Even if you have made any gains when you sell, you'll have the CGT annual allowance of £3,000 to factor in before any tax is paid.

[BeamishStout]

Even if you have made any gains when you sell, you'll have the CGT annual allowance of £3,000 to factor in before any tax is paid.

You beat me to it

Also the https://www.gov.uk/capital-gains-tax/re ... -gains-tax site states that

If your total taxable gains are above your allowance, you’ll need to report and pay Capital Gains Tax.

And in most cases (especially for those who hold shares away from the SIP) the fact that negative gains (i.e paper losses) were made for most folk means that Robber will not get their hands on any liabilities (as none will arise).