DailyMail Money: Understanding Capital Gains Tax on DIYInvesting Shares
DailyMail Money: Calculate Capital Gains Tax on Your DIYInvesting Shares
If you've been gifted shares and are looking to sell, like the £7,000 worth of BAE shares you received, determining the capital gains tax is crucial. Here's how to work it out:
Step 1: Determining the Base Cost
- Identify the original purchase price of the shares.
- If unknown, you may need to estimate based on market value at the time of gifting.
Step 2: Calculating Sale Proceeds
- Calculate the total amount you expect to receive from selling the shares.
Step 3: Capital Gains Calculation
Subtract the base cost from the sale proceeds to determine your capital gain. If the gain exceeds the annual exemption limit, you will need to pay capital gains tax on the excess.
Considerations for DIYInvestors
- Keep Records: Document any relevant information about the shares.
- Consult a Professional: If in doubt, consider seeking advice from a financial advisor.
To maximise your returns, understanding capital gains tax is essential. Ensure to keep informed about any changes in tax regulations that may affect your investments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.