SIP query

[charlie156]

I have shares in a SIP that if I sell now will incur a tax charge. I also have an unused personal tax allowance for this year. If I sell the shares will I get the tax charge on the SIP shares refunded due to my unused tax allowance? Many thanks

[AnthonyR]

I assume you mean an approved Share Incentive Plan issued by your employer? In which case, are you talking about an income gain as a result of taking the shares out of the plan too early or CGT on the sale of the shares after the qualifying period?

It's quite a complex area, but in simple terms, if you have an income tax charge which is within your personal allowance and they have deducted tax at source then your will be able to reclaim the overpaid tax on your tax return. Bear in mind there may also be a CGT charge on the disposal of the shares.

[charlie156]

AnthonyR, thanks for your reply. Yes, it's a Share Incentive Plan that I've held for over 3 years and am now entitled to sell but will be taxed on as it falls short of the 5 year tax free qualifying period.
I have 2 weeks left of this tax year, so I have to act soon. So your reading of my situation is I will get the tax charge refunded due to my unused personal tax allowance?
Many thanks