If I transfer some shares, does this incur CGT?

08 February 2023

Question by Ansuya

If I transfer some shares that I have into a stocks and shares ISA, does this incur CGT if I have made a profit of more than £12,300?

Answered by

Hi Ansuya

Thanks for your question. Yes, CGT will be payable at either 10% or 20% depending on your tax position. You can be a bit clever here though and sell enough shares to generate a gain of £12,300 prior to 5th April, and then sell more after 6th April in the new tax year. However, please bear in mind that the CGT allowance will reduce to £6,000 after 6th April 2023 (and £3,000 after 6th April 2024).

Feel free to contact me directly if you'd like any further information.