Personal Finance

How to sell shares in the UK: step-by-step guide

Emma-Jane Stogdon

28.08.24 (last updated)

Read time 9 minutes

Want to sell shares you hold in a company? Perhaps you’ve achieved your investment goals and are ready to reap the returns, or it’s time to cut your losses on underperforming stock.

Whatever your plans, read on for a complete guide on how to sell shares in the UK. We’ll cover how to do it step-by-step, along with a rundown of the top investment platforms for selling shares.

Disclaimer: The information in this article is for reference purposes only. Wise does not offer to buy or sell stocks, and all information on this page should not be considered financial advice. All investment decisions should be made after thorough research and consultation with a qualified financial advisor. Remember that investments, even in low-risk funds, are never guaranteed and your capital is at risk.

How to sell shares

1. Decide whether selling shares is right for you

Selling shares can have an impact on your long-term investment strategy, so it’s not a decision you should take lightly. Nor is it recommended to sell shares based on a short-term dip in performance, or based on emotions such as panic, impatience or fear.

The best thing to do if you’re considering selling shares is to speak to a professional financial advisor or investment expert first. They can help you with the next step, which is to make an action plan.

2. Make an action plan

It’s important to consider the impact of selling your shares will have on the rest of your investments. Will you still have a diversified portfolio, or will it leave all of your eggs in one basket?

An investment or financial advisor can help you work out what happens next, after you sell your shares. There may be further steps you need to take to stay on track to achieve your long-term investment goals.

3. Log into your investment platform

Ready to sell? If you’re sure you want to go ahead, all you need to do is log into your account on your chosen investment platform and sell your shares. Alternatively, you can sell your shares by phone.

4. Review your portfolio

Within your profile on your chosen investment platform, you’ll be able to review your portfolio. This is where you’ll find details of all your investments, including the shares you want to sell.

5. Identify the shares you want to sell

Identify the particular shares and the amount you want to sell, then follow the platform’s processes to carry out the trade.

6. Review your sale

Double and triple-check all the details carefully, before confirming the sale.

Investment platforms in the UK for selling shares

Before choosing an investment platform, always carefully research and check that the firm you are dealing with is listed on the FCA register, this will reduce the likelihood of falling prey to scams.

Here’s a quick look at some of the most popular investment platforms available in the UK right now:

Platform	Features	Fees
Trading 212	Fractional shares Earn interest on your portfolio FSCS protection	No account fees No commission fees for selling or buying shares¹
eToro	Multi-asset platform Virtual trading tool Ready-made portfolios	No account fee No commission fees for selling or buying shares Currency conversion fees apply (for all trades not in USD)²
IG Trading	Demo account Wide range of tradable assets	No account fees Commission fees of £0 for US shares and from £3 for UK shares³
Webull	Trading in US, CN and HK stock markets Virtual trading tool	No account fees Commission fees - 2.5 basis points Sell fees include Regulatory Transaction Fee and Trading Activity Fee⁴
Interactive Brokers	Fractional trading Overnight trading hours IBKR GlobalAnalyst	No account fees Commission fees from 0.05% for UK stocks⁵

4 reasons people sell shares

There are a few different reasons why people sell shares. Here are just a few situations in which you might decide to do it:

You reach their long-term investment goals - your shares reach the ideal price and it’s time to sell up to achieve the desired returns.
It’s time to cut your losses - if your shares have deteriorated in value due to poor performance over a long period, it might be time to sell up and invest elsewhere
Balance out your portfolio - you can use the funds from the sale of shares in one company to invest in another.
Changes in the company - the ethics or management of the company may no longer match your personal values or suit your investment strategy.

When should I sell my shares?

Selling shares should never be done on a whim, or if share prices temporarily dip. It should only be done as part of a careful and logical decision-making process, or as part of your investment strategy.

It might be that you’ve been investing for years, and it’s time to access vital funds for your retirement or another financial goal.

Or it could be because something drastic has happened, such as a change in your financial circumstances. It might be the right time to sell if there’s been a major change in the company you’ve been investing in, such as corporate restructuring.

Alternatively, your shares could have performed poorly over a long period, and it’s time to cut your losses and invest elsewhere.

How long does it take to sell shares and receive funds?

The exact time it takes depends on the platform or other method you use to sell shares. However, you should be able to sell your shares almost instantly, and receive the funds in your platform account within 2-3 working days.⁶

You should also factor in a few extra days for withdrawing the funds to your UK bank account, if you choose to do this rather than reinvest on the same platform.

How do I get my money after selling shares?

You have a couple of options for what to do with the funds after selling shares. You can reinvest in other shares or investment products on the same platform, or you can withdraw the funds to your bank account. Bear in mind though that some platforms charge withdrawal fees.

What are the risks of share dealing?

Investing in shares inevitably comes with some risks.

The crucial thing to remember is that share prices can go down as well as up. This leaves a very real risk that you could lose all the money you invest.

Aside from share price volatility, other risks include stock market downturns, exchange rates risks and liquidity risk (where the company you invest in goes bankrupt).

Are there any alternatives to buying and selling shares?

There are lots of ways to trade and invest, alternatives to buying shares or selling them include funds, bonds and investment trusts. You can also invest in an ISA.

Earn a return on your Pounds, Euros and Dollars with Wise

Another alternative to share dealing is Wise Interest, available with the Wise account. It lets you earn returns in GBP, USD and EUR by investing in a fund that holds government-guaranteed assets - and all while retaining easy access to your money.

Capital at risk.

Open your Wise account

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

FAQs: Selling shares in the UK

Can I sell my shares without a broker?

You don’t have to use a broker to sell shares, as you can use online platforms to carry out your trades.

How much tax will I pay when selling shares in the UK?

You don’t have to pay Stamp Duty Reserve Tax (SDRT) when you sell shares in the UK, as this is only applicable to buyers.

However, you may be liable for other types of tax depending how much you earn from selling shares and if you use a general investment account.

A prime example is capital gains tax (CGT). All investors have an allowance for how much they can earn a year using general investment accounts, which for the 2024/25 tax year is £3,000. If you exceed this, you may have to pay CGT.

Can you avoid Capital Gains tax on shares?

If you’re liable for capital gains tax on the sales of shares, you can potentially use your ISA allowance to minimise the amount owed.⁷

What is the ‘30 day rule’ for shares?

The 30-day rule is an important one to understand in relation to your liability for Capital Gains Tax (CGT) when selling shares.

Here’s what it means in a nutshell. If you sell shares but decide you want to repurchase them, you must wait at least 30 days. This period is crucial if you want to utilise any CGT exemptions, or create a loss to offset against other gains realised within the same tax year.⁸

Can I transfer shares into an ISA without selling them?

It’s not possible to transfer most standard shares directly into an ISA. However, it may be possible to sell and then repurchase them within a Stocks and Shares ISA account - in order to get the ISA tax benefits.⁹

FAQs: Wise Interest and Wise Stocks

Can I earn interest or a return with a Wise account?

You can earn returns on GBP, USD and EUR by opening a Wise account and investing in a fund that holds government-guaranteed assets.

Open your Wise account

How do I use Wise Interest and Stocks?

If you are eligible, you can decide how you'd like the money in your account to be used. Simply check the Wise app, select your chosen balance or Jar and select ‘Earn’. From there, currently you can choose to keep your balance as ‘Cash’ (which is the default) or make your money work for you in one of two ways; Interest or Stocks.

Wise Interest and Stocks are only available to UK, Singapore and some EEA residents. If you see the option to change your balance or Jar from Cash to Interest or Stocks, then you're eligible.

How do I switch between Cash, Interest and Stocks on the Wise app?

Your money in Wise is automatically kept as Cash in your balances and Jars, but you have the flexibility to switch it between Stocks, Interest, or Cash whenever you'd like.

Here's how to adjust how your money is used:

Go to the balance or Jar you'd like to modify.
Under Balance information, select Earn.
Choose from the available options (see below).

What happens if I select Cash?

Nothing. This is because your balances and Jars are by default, held as Cash. If you choose this option, you can’t earn a return on the money you spend, but it isn’t at risk in the market.

What happens if I select Stocks?

Choosing this option means we’ll invest some or all of your money in your chosen Jar or balance in the index tracking fund we’ve chosen.

What happens if I select Interest?

If you want to earn a return on your money, opt for ‘Interest’ and you’ll see the option to invest all or some of your money in the Jar or balance of your choosing and we’ll invest it in the interest-earning fund we’ve chosen. This will depend on the currency.

Sources used:

1. Trading 212 - Terms and fees
2. eToro - Trading fees
3. IG - Share dealing
4. Webull - Pricing
5. Interactive Brokers - Commissions
6. Unbiased - How to sell stocks and shares
7. Barclays - Adding up the costs of buying and selling shares
8. Redmayne Bentley - Capital Gains Tax Fact Sheet
9. GOV.UK HMRC Community Forums - Share transfer into a stock and shares ISA

Sources last checked on date: 13-Aug-2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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