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  • FIRST POST
    • mwinlow
    • By mwinlow 12th Jul 17, 4:17 PM
    • 5Posts
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    mwinlow
    Gifting a Partial Nominee Foreign Share Holding in Certificate Form
    • #1
    • 12th Jul 17, 4:17 PM
    Gifting a Partial Nominee Foreign Share Holding in Certificate Form 12th Jul 17 at 4:17 PM
    Hi,

    I have been working at this for some weeks and getting no-where. It seems a relatively simple thing to do to me and I am puzzled as to why it is proving to be so complex!

    I am a UK citizen and I am resident in the UK. I have a nominee account with The Halifax for dealing in shares. I own shares in a US-based company, purchased through the Halifax. I wish to transfer one share (it's price is quite expensive at the moment!) of my holding to a friend as a 21st birthday gift.

    I have spent several hours on the phone with representatives of both the company in question's registrar company in the US as well as with those of the Halifax trying to sort out how to effect this transfer. I was given to understand that by completing a ’Transfer Request Form’ and forwarding it with a covering letter to the Halifax, the process would be initiated by the Halifax who would liaise with the US registrar company.

    Unfortunately, Halifax has contacted me to say this is not correct and that they can only transfer shares electronically. They have effectively said it is not possible to do what I want unless the friend opens an account with the Halifax and then they can transfer one share electronically. I would rather avoid my friend having to do any work to effect this transfer and, besides, a paper certificate is tangible and therefore much better suited for gifting!

    Any views on how I should go about this would be gratefully received.

    Martin Winlow.
Page 1
    • Reaper
    • By Reaper 12th Jul 17, 4:45 PM
    • 6,085 Posts
    • 4,126 Thanks
    Reaper
    • #2
    • 12th Jul 17, 4:45 PM
    • #2
    • 12th Jul 17, 4:45 PM
    While theoretically possible nominee accounts are looking for simplicity and low costs. I am not familiar with the Halifax but most nominee accounts are not willing to trade in certificates, with the sole exception of converting them to electronic as a one off, whereas you want to go in the opposite direction.

    Also are you sure your gift will be welcome as it complicates their tax return, they will have to fill in a W-8BEN form, dividends in US$ are a pain, and they will have to jump through some hoops to sell it?

    The advice from the Halifax sounds sensible to me, or better still go for a UK company if they are a novice investor. Their favourite football team for example.
    Last edited by Reaper; 12-07-2017 at 4:49 PM.
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 5:11 PM
    • 6,876 Posts
    • 7,315 Thanks
    AnotherJoe
    • #3
    • 12th Jul 17, 5:11 PM
    • #3
    • 12th Jul 17, 5:11 PM
    I agree with Reaper, forget about the Tesla share*, its a lot of hassle to own (especially as paper), any dividends will be useless and go unused, and will be a hassle for them to sell as well.

    You say you dont want your friend to do work but just wait until he looks at a W8-BEN and wonders what the heck you've subscribed him to !

    * Just guessin....
    • mwinlow
    • By mwinlow 13th Jul 17, 7:47 AM
    • 5 Posts
    • 0 Thanks
    mwinlow
    • #4
    • 13th Jul 17, 7:47 AM
    • #4
    • 13th Jul 17, 7:47 AM
    Hi,

    Thanks for your comments.

    Fortunately, the company concerned doesn't 'do' dividends (yet) and although the share cost me very little (£25) it now worth 15 times that. So, it's probably worth it for the friend - certainly if it does as well as I hope it will over the next 10 years or so. Some pundits are talking about £1k/share which I, personally, don't think is unreasonable... or it may be worth nothing by then, of course. But that was part of the reason to gift a share to them in the first place - a bit of an intro to the world of share dealing.

    Anyway, the gift has already been made (in the form of a photoshop certificate and explanation of why!) so I am a bit committed. I'll report back with the rest of the story in due course.
    • Reaper
    • By Reaper 13th Jul 17, 8:51 AM
    • 6,085 Posts
    • 4,126 Thanks
    Reaper
    • #5
    • 13th Jul 17, 8:51 AM
    • #5
    • 13th Jul 17, 8:51 AM
    Then I suggest you become the "nominee". Leave it where it is and sell it for him and hand over the money when he decides the time is right.

    That way he has no concerns about tax or dividends and it is simply a tax free gift when he decides to sell.
    • Malthusian
    • By Malthusian 13th Jul 17, 9:19 AM
    • 2,401 Posts
    • 3,329 Thanks
    Malthusian
    • #6
    • 13th Jul 17, 9:19 AM
    • #6
    • 13th Jul 17, 9:19 AM
    Agreed with Reaper. There is no reason not to mock up a "share certificate" in the form of an IOU (only "IOU one share of Tesla Inc" instead of "IOU £10") and give that to him. It will have more or less just as much legal significance as a "real" share certificate issued by Tesla' registrar. Much less hassle for both of you.

    (It would probably be best to hold at least one Tesla share in your stocks & shares ISA so you don't have a bill for CGT when he wants to realise the gift.)
    • mwinlow
    • By mwinlow 13th Jul 17, 9:21 AM
    • 5 Posts
    • 0 Thanks
    mwinlow
    • #7
    • 13th Jul 17, 9:21 AM
    • #7
    • 13th Jul 17, 9:21 AM
    Hi,

    What a good idea! (Doh!)

    MW
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