When To Sell Shares?

[simon.r]

I have some shares in a company I used to work for (part of an employee 'deal'). The total value has ranged between £9.5k and £14.5k over the last year and is currently about £12.5k. To complicate matters the shares are quoted in Euros, so the exchange rate has a significant impact.

I don't *need* the money - if I were to sell I'd pay a chunk off my mortgage, which would reduce my annual payment by about £850 (based on the current value of the shares). On the other hand I'd lose the annual dividend of about £600.

I do appreciate that trading in shares is what those who are good at it make fortunes from, so not expecting any definitive answers, just interested in any thoughts?

Cheers.

 

[beastie]

Well it's pretty easy maths, you will be 250 pounds pa better off if you sell them and chuck it on the mortgage. However the chance is that your shares will go up in price in the long-run. But who knows by how much?

 

[Paulus]

Share prices at the moment are resonably static at the moment, one day up, one day down a bit. What i would say is this. You say that you could reduce your mortgage payments by £850 per year, but you are only making £600 on dividends, so you would be £250 a year better off, I would pay off a chunk of the mortgage and try to re-negotiate the mortgage rate/ type of mortgage you are paying at the present time. The more you pay off, the earlier the redemption date and the less interest you will pay.

 

[asterix]

It's all down to how much risk you want and how pro-active you are willing to be.

Like you, I bought company shares through SAYE and have had them for at least a decade (started buying in 1994). They produce a good divi but due to the slump in share price are worth a lot less than I paid for them on average. The divi's handy and I don't have to sell them and realise their losses so I am keeping them.

Otherwise I'd sell right now.

 

[Mark Grant]

I think (though I may be wrong) that you can turn 10K worth of shares into cash per year without incurring capital gains tax.
I'm sure someone more knowledgable will be along to confirm or correct this.

 

[snorri]

I think in order to get the best advice you would have to disclose a lot more information, not that I would expect anyone to do that in an internet forum!
Perhaps you should get advice from a professional adviser to whom you would give full details of your present investments ,debts, income, outgoings, family responsibilities, age, health etc.etc.

 

[RaRa]

I think (though I may be wrong) that you can turn 10K worth of shares into cash per year without incurring capital gains tax.
I'm sure someone more knowledgable will be along to confirm or correct this.

I think if they are granted as part of an employee deal you have to hold them for at least 2 years or you will be liable for capital gains tax.

 

[accountantpete]

Shares are defying the reality of the economic situation at the moment - probably because there's no-where else to put the money!

Anyone who advises you what to do is guessing.

The Annual tax free amount (ie gain not proceeds) is around £10k - you can always sell half and keep half.

 

[Dave7]

I am privy to certain 'inside information' and can say with absolute certainty.......you should sell them now, immediately, for whatever you can get.
I will give you £2K for them .
I know someone who came into £100K approx 5 years ago and invested it.......he lost over 50% of it within 1 year.
I invested 2 years ago but as I am very cautious I put them all into small risk. I will let you know how they are in another 3 years.

 

[simon.r]

I think (though I may be wrong) that you can turn 10K worth of shares into cash per year without incurring capital gains tax.
I'm sure someone more knowledgable will be along to confirm or correct this.

I think if they are granted as part of an employee deal you have to hold them for at least 2 years or you will be liable for capital gains tax.

Good points, thanks - I need to look into that. It was an ongoing 'sharesave' scheme that ended abrubtly when the part of the company I worked for was bought by a different comany. I was given the shares tax free at that point, but I do need to check what the tax implications are if I sell them now.

 

[User6179]

I have some shares in a company I used to work for (part of an employee 'deal'). The total value has ranged between £9.5k and £14.5k over the last year and is currently about £12.5k. To complicate matters the shares are quoted in Euros, so the exchange rate has a significant impact.

I don't *need* the money - if I were to sell I'd pay a chunk off my mortgage, which would reduce my annual payment by about £850 (based on the current value of the shares). On the other hand I'd lose the annual dividend of about £600.

I do appreciate that trading in shares is what those who are good at it make fortunes from, so not expecting any definitive answers, just interested in any thoughts?

Cheers.

Your getting the equivolent of 5% interest on your shares so if your mortgage interest is over 5% I,d say sell the shares