Short term Capital Gain- on sale of shares

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This discussion clarifies the tax implications of short-term capital gains from selling shares in the UK. While there's no general exemption limit for these gains, your overall taxable income plays a role. If your income, excluding capital gains, falls below the basic tax-free allowance, it can reduce the tax liability on your short-term gains. However, short-term capital gains themselves are generally taxable, and no specific rebate applies to them.

Mahesh Vijay

Mahesh Vijay (Querist)

05 December 2024 How much short term capital gain is tax-exempted on sale of Listed shares? If we have nil taxable income and having some short term capital gain is short term gain is taxable?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

05 December 2024 As such there is no exemption limit, but if your aggregate income except capital gains is less then the basic exemption limit, the to that extent tax liability over the STCG is reduced.
E.g. Say, your basic income is 1 lakh and STCG is 2.50 lakhs, then under new regime your taxable STCG would be 0.50 L.

Mahesh Vijay

Mahesh Vijay (Querist)

06 December 2024 If a person having salary income of Rs. 450000 and short term Capital gain from share sale is Rs. 50000. Is all short term gain will be taxable or exempt.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

06 December 2024 It will be taxable. No rebate applies over the STCG.

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