Capital Gains Tax
Capital Gains Tax (CGT) may be payable by individuals on gains made from the disposal of Barclays shares.
Capital Gains Tax can be complex, particularly where shareholdings are built up over a period of time, where part disposals out of existing shareholdings are made or rights issues have taken place. Shareholders should take professional advice in these circumstances.
Personal circumstances may affect tax issues for shareholders. This information should not replace professional advice.
Each individual has an annual (non-cumulative) exemption, which for the tax year ending 5 April 2017 is £11,100 and for the yax year ending 5 April 2018 is £11,300 respectively of chargeable gains. Where payable, CGT on shares is levied at a rate of 10% for basic rate taxpayers, and 20% for higher and additional rate taxpayers.
Example calculation for Capital Gains Tax
Mr Smith bought 1,000 shares in November 1991 at a cost (including dealing costs) of £3,575. He sells the shares in January 2018 and realises (after dealing costs) £21,500. He owned no other shares in the period.