If I purchase shares in my employer's business via share purchase plan, and those shares are bought directly from my net pay - do I need to pay tax on the money I receive when I sell those shares on the market?
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2If you make a profit from selling the shares, you will be liable for capital gains tax - but only if your gain exceeds your annual allowance (currently £11,100). This is unrelated to how you came by the shares in the first place.– Steve MelnikoffCommented Nov 16, 2015 at 23:33
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Thanks @SteveMelnikoff if you care to write that as an answer I'd be happy to accept it :)– SierraOscarCommented Nov 17, 2015 at 0:16
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1The Capital Gains Tax rate is either 18% or 28% depending on your income. gov.uk/capital-gains-tax/work-out-your-capital-gains-tax-rate– davidjwestCommented Nov 17, 2015 at 16:12
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1 Answer
If you sell your shares for more than their value at the time you received them (i.e. you make a profit) then you will be liable for capital gains tax - but only if the profit exceeds your annual allowance (£11,100, in tax year 2015-16).
This is unrelated to how you came by the shares in the first place.
(Note that there are certain exemptions to this, which includes some employer share schemes.)
