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Where Taxpayers and Advisers Meet

Tax on sale of shares - help!

Mez3007
Posts:1
Joined:Wed Jan 25, 2017 7:19 pm
Tax on sale of shares - help!

Postby Mez3007 » Wed Jan 25, 2017 7:39 pm

I'm looking for help on something that I heard discussed at work and hadn't heard about.
Basically someone mentioned tax on sale of shares (I think in the company the client works at) in respect of an IPO.
They mentioned that the individual can elect to only pay 10% on the sale, or opt to pay the prevailing rate. They said that even though he had only sold 25% of his shares he could elect to pay 10% on the entire holding, but seemed unsure if this. The individual had elected to pay 10% but could revoke the election up until the end of the month.
They were saying the advice came down to the likelihood of the share price going up or down, and the prevailing rate of tax going up.
I'd never heard off this, but surely if it is possible you would always choose to pay 10?
Can anybody shed any light please?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax on sale of shares - help!

Postby pawncob » Mon Feb 20, 2017 5:37 pm

No. Suggest you ask friend to explain.
With a pinch of salt take what I say, but don't exceed your RDA

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: Tax on sale of shares - help!

Postby SteLacca » Tue Feb 21, 2017 2:05 pm

It sounds as though your colleague has gotten completely the wrong end of the stick re entrepreneur's relief.

I suggest if you want advice in this regard you speak to someone who knows what they are talking about.


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