[HeavyRightFoot]

Anyone savvy on tax on shares?

I owed my brother some money, I had shares lying about and thought I would transfer some of them to cover it.

Since I got the shares, they had trebled in value so I thought it was easier to give him those and he can cash in whenever he wants.

I know the tax relief for this tax year is £11,100 on gains but as I have given that as a gift to him, do I need to declare this anywhere?

Also does this go towards my annual allowance so if I cash some in for myself then I pay capital gains tax on it?

Any ideas?

Thanks.

[AlwynMike]

I THINK that even if you give them away, you will still be liable for CGT.
Depending on the amount, there may be stamp duty to pay on them when you transfer.
You should declare this.
You will be liable for CGT if you sell some for yourself if you are above the CGT threshold.
If you have had the shares for a while, there may be taper relief on them (if i still exists!!)

This may be also old information, but you can only give a total of £3000 per year as a gift (this is a total of gifts, not a gift to one person). This is may increase if it is a Wedding gift.

Mike

[HeavyRightFoot]

Cheers

The more I look into it the more complex it gets.

[imy]

Its not worth the aggro. Trust me. If your married you can trabsfer some shares to the mrs and then your allowance goes up. But gifting them will be a ball ache that is better avoided.

[HeavyRightFoot]

It certainly looks that way.

Cheers

[Somerset Jim]

As others have said you would be best off selling the shares yourself and realising the gain up to your CGT allowance of £11,100 and gifting this amount. If you are married then transfer the ownership of some shares into your spouse's name ao that she/he can use their CGT allowance of £11,100.

The gifting allowance rule for IHT purposes (mentioned above) is £3,000 per year once to an individual. The previous tax years allowance can be carried forward provided it was not used therefore making it £6,000. Again if married the same process can be carried out for the spouse.

You would need to document the gifts so that your executors know where to find the information. This is provided your net total estate is worth in excess of £325k (double if married) less any gifts made above the aforementioned allowances. The gifts fall off after 7 years provided the total amount is not in excess of £325k.

Please note that this is in no way tax advice but simply information for you to use. If you want to ask any questions then send a PM and I'll help out as best as I can.

[HeavyRightFoot]

Originally Posted by Somerset Jim

As others have said you would be best off selling the shares yourself and realising the gain up to your CGT allowance of £11,100 and gifting this amount. If you are married then transfer the ownership of some shares into your spouse's name ao that she/he can use their CGT allowance of £11,100.

The gifting allowance rule for IHT purposes (mentioned above) is £3,000 per year once to an individual. The previous tax years allowance can be carried forward provided it was not used therefore making it £6,000. Again if married the same process can be carried out for the spouse.

You would need to document the gifts so that your executors know where to find the information. This is provided your net total estate is worth in excess of £325k (double if married) less any gifts made above the aforementioned allowances. The gifts fall off after 7 years provided the total amount is not in excess of £325k.

Please note that this is in no way tax advice but simply information for you to use. If you want to ask any questions then send a PM and I'll help out as best as I can.

Message sent

Thanks

[Somerset Jim]

Originally Posted by HeavyRightFoot

Message sent

Thanks

Will have a look at the tax books when I'm back in the office this week for you. Just literally come back from a tip around Europe with dodgy wifi in certain areas!