Chip

How long do these have to be kept for before I can sell them tax free. Got a booklet dated 2001 which says 5 years but I thought Gordon Brown hadcut that to 3 yrs. Anyone know?

Chip.

back marker

No simple answer- depends on the circumstances in which the shares are given (ie get professional advice!). The main areas to consider are: 1) whether you got given shares 'cheap' ie below the market price, 2) whether they were originally shares or options, 3) whether the scheme was inland revenue approved, 4) whether you were and still are an employee, 5) whether the copmany is listed on the London stock exchange or AIM, or private. The profit can be treated as income or capital gain depending on these and other circumstances.

http://www.inlandrevenue.gov.uk/shareschemes/index.htm (sorry, clicky is beyond me!) has loads of stuff on it which will bore you to tears.

The 3/5 yrs you're referring to is with reference to shares in a private (or I think AIM listed) company where you've made a profit - the profit is only taxed at 10% capital gains tax once you have held the shares for 2 full years (used to be 4), rather than the usual 40%. There's a taper after 1 yr as well (20%?) but I can't remember the terms/amounts.

Your company payroll office should be able to give initial advice as I can't imagine that you're the only person who's wondering.

Hope that is of some help although it doesn't answer the question I'm afraid!

Coulster

Chip, u dont work for Transco do you?

Gordo

beware also, that there may be a liability now for income tax. if given as part of an approved scheme (sharesave or similar), you're fine. If not, then they are deemed to be a benefit in kind (especially as it sounds like you can sell them instantly) - again, advice required....

Chip

Coulster,

Sure do. What Dept you in . I'm in PMC.

Chip

[Edited by Chip - 9/16/2003 8:53:22 AM]

[Edited by Chip - 9/16/2003 8:57:44 AM]

TelBoy

The vast majority are three years. But i'm not sure whether companies can extend that timeframe, which i believe is a minimum, not a maximum. I guess they can if your booklet mentions five years. Seems a bit harsh.

Coulster

Chip I'm in Ems. Im a Tse.
I believe that you have to keep them in fir 5 years so they become tax free.
What is PMC, cant for the life of me work it out...