CGT on Inherited Shares.... which date is used?

paddytt

Hi

Searched but cannot find this on the Forum already.

I inherited some shares when my uncle passed away two years ago. For various reasons, the shares have only recently been transferred from the estate and are now in joint names with my wife to reduce the tax on the divi's.

We would like to Bed & Breakfast some of them into an individual share ISA's. Is this possible being in joint names? Or do we have to change the ownership into individual names first?

regards

paddy

olbas_oil

At the date of your Uncle's death the shares had a probate value. This will be your base cost (doesn't matter when they were actually put in your name).

You don't say whether the shares were left to just you, and you subsequently gifted them to your wife, or whether they were left to both of you. Under current rules that doesn't matter either. Your wife will be deemed to have acquired a half interest in them at your base cost (probate value), either as direct inheritance or as gift from you.

But you can't just transfer them into an ISA. They have to be sold and re-purchased. So in effect you jointly sell, and then individually buy back half each to put into your respective ISAs. Some brokers may offer a discount on commission. The sale may produce a gain which may be chargeable depending on your respective other gains/losses.

paddytt

Many thanks.
They were left to me and I gifted half to my wife. I had realised that we would have to sell them and buy-back, it was just the mechanics of the buy-back that I was interested in. We are with HL so I will ask them about commission etc.

regards

TT