CGT due on SAYE scheme

I have a Save as you earn scheme due to expire in November for around 45k from an initial investment of 18k. I plan to transfer 20k into an s&s ISA within the first 90 days. However I am unable to find any guidance on how is CGT calculated for the 23/24 financial year on the remaining amount not transferred to the ISA . Would I pay tax on my initial investment of 18k? Also would I still be eligible for the 6k CGT allowance?

Hi,

You would be liable on any gain made above the £6000 annual exempt amount irrespective of putting a balance into your ISA. The initial 18k investment would be your 'cost' price and would be deducted from the gain.

Thank you.

Hi, I was under the assumption plus the guidance on your website states ‘you’ll not pay Capital gains tax if you transfer the shares to and isa within 90 days of the scheme ending’. Please can you confirm that I in fact will pay the CGT on these funds as per your comment above.

Hi,

You will not have to pay Capital Gains Tax on any gains you make on your shares if you move them to an ISA. You can transfer up to £20000 of employee shares int a stocks and shares isa, if you have shares in a save as you earn scheme (SAYE) or share incentive plan (SIP) within 90 days of when you took your shares out of your SIP or SAYE.  

Any remaining shares that cannot be placed in the ISA, will be subject to Capital Gains Tax. The 2023 to 2024 annual exempt allowance is £6000.  The gains would be calculated from the disposal value minus the acquisition costs and disposal costs.

Thank you.

Hello, I’m in similar situation. Based on your reply above cost of my SAYE investment is £14k and market value £36k this means gain is £22k. If I will transfer gain to ISA which is £20k and use my £6k tax allowance for remaining £2k of the gain that means I don’t have to pay capital gains tax? Is that correct? Or out of £36k market value investment, £20k will go to ISA so no tax less £6k allowance which leaves £10k for capital gains tax? Also, alternatively, when I will get shares can I transfer some to my ISA and some to my partner’s ISA (unmarried, not in civil partnership) for free? Will this attract capital gains tax? Thank you

Hi,
 

Out of the value £36k, £20k can be transferred to the ISA.  The remainder may be subject to capital gains tax, after your annual exempt allowance is deducted.  There would be a capital gain tax liability, arising from the transfer of the shares to your partner. Thank you.

Hiya, I’ve got another question similar to the above. I’ve got SAYE shares which matured on 1/12/23 and cost was 13k and amount I received was £36k. I’ve already used my 20k isa limit this year, will that mean I’m not entitled to have the 20k s&s isa amount to reduce the amount of tax? Or would it be possible to transfer the money to my husband and he have a s&s isa in his name? Is this just any s&s isa or does this have to be a specific one? Also, when calculating the tax do I use the 13k cost to me or the 13k + the cost of discount which my company gave me?

Hi,

As you have already invested your limit for ISAs for 2023 to 2024 then you now cannot transfer them to reduce the tax. As they have already matured, transfering them to your husband does not remove the Capital Gains Tax that will be due and this would not qualify for relief under the rules of transfering the shares to a stocks and shares ISA.

Your cost price will be the £13000 that you paid for them.

Thank you.

Hi, I have a similar query please, where I’m still a bit confused on what I can / can’t do. The guidance isn’t clear unfortunately and (to me anyway!) seems a bit contradictory. My SAYE scheme matures in December 2024, with up to 6 months after that to decide to buy the shares and the ability to split this into several decisions. I will have contributed £30k and the shares are on course to be worth approx £55k. I’m looking to minimise/eliminate any tax due on the £25k “gain” - ideally taking advantage of being married and also using two separate tax years. My questions to achieve this: 1) By transferring £20k to my unused 2024/2025 ISA allowance, am I right in thinking that no capital gains tax is due on this? 2) Can I transfer a further £20k to my wife’s unused 2024/25 ISA allowance, again with no capital gains tax due on this? 3) Presuming 1 and 2 above are permissible, can I then transfer the remaining shares into my 2025/26 ISA allowance as we enter the new tax year - again with no capital gains tax due? I would ensure I do 1, 2 and 3 within 90 days of each other, stretched over the cusp of the two tax years. If the above is not possible, what capital gains tax would I/we owe please? Thanks in advance for your help.

(to add to my query above - I understand capital gains tax will be payable for any increase between when I buy the shares and when I transfer them to the ISA, but believe it will not be payable for any gains prior to this during the SAYE period?)

Hello - any update please?

to go back to the Original question, isn't the answer as follows: You paid in 18k and now receive shares worth 45k (to make this easy we assume they are now worth £100 each, so you get 450 shares). Therefore your acquisition cost per share is 18,000/450 = £40 You put 200 of these shares into an ISA. You are left with 250 Shares. For each of these shares you have made £100-£40 = £60 gain. Your total gain for CGT is 250*60 = £15,000, you deduct the 6k allowance and pay CGT on £9,000

Hi mb199 b,

You can see guidance here:

Tax and Employee Share Schemes

Thank you.

 

Hello. Thanks but this guidance answer my queries on either use of two tax years or using my spouse’s allowance, which are the two key queries. Can you help provide guidance on these please? I am trying everything I can to be compliant here. Thanks

Slight typo above: This guidance *does not* answer my queries…

Hi mb199 b,

1. That is correct.  
2. No, as your shares must be transferred to your ISA.  
3. You can only do this in 2025 to 2026 if you meet the 90 day deadline. The level of any potential capital gains then depends on what is left and what your income is.

Thank you.

 

Hi mb199 b

We refer you back to our earlier answer  - 

1. that is correct  
2. no as your shares must be transferred to your ISA  
3. you can only do this in 25/26 if you meet the 90 day deadline. The level of any potential capital gains then depends on what is left and what your income is.

Thanks

Can I follow up with a question about how to use your spouse's CGT allowance. How do I transfer SAYE funds to my spouse to allow me to make use of his allowance? Thanks

Hi,
Please refer to HS287 Capital Gains Tax and employee share schemes (2024) Employee share and security schemes and Capital Gains Tax
Thank you.

Hi. I am hoping you can clarify something on this thread. As I understand it for the following scenario: if the shares are worth £65,000 today I paid £30,000, I can: 1) sell 30k. No tax as that’s my cost 2) transfer 20k to share ISA allowance as not currently used 3 sell 3k and pay no tax as within CGT allowance. That’s 65k - 30k - 20k -3k = 12k left. I have two questions. 1) The 20k that is within my ISA. I want to now turn that to cash to buy something. By transferring to the stock and share isa can I then sell them and not pay CGT? Basically how do I get them out of the ISA tax efficiently? 2) If I do not sell the remaining 12k of shares, but leave them within my share dealing account I will not pay any CGT tax as I’ve not realised a profit yet. Please confirm. If that’s the case, in the following financial year can I then transfer them to a new ISA? And if I do then am I again exempt from CGT? How can I then sell them to avoid tax. Thanks a lot !