shares

kmr571

Not too sure if this is the correct forum to use but will try !. I am the executor on my mothers estate with my brother and sister having power reserve. We have decided to sell the shares that my mother had, which are still in her name, though I do have an executors account for her estate. Can anybody advise the best way to go about selling the shares (about £60,000 in value). Is there any annual limit on share selling. I am afraid I am completely in the dark over this ! Thanks for any help

chris_m

The main thing I would be concerned about is capital gains tax liability. Depending on the gains since the shares were purchased it may be beneficial to only sell some in this financial year so that the gain (not the actual value) is less than the CGT limit (£10,700 IIRC) and hold the rest to sell next year - maybe even some the following year.
There may be other complications with regards to inheritances, hopefully someone else will be able to advise further.

jimjames

chris_m wrote: »

The main thing I would be concerned about is capital gains tax liability. Depending on the gains since the shares were purchased it may be beneficial to only sell some in this financial year so that the gain (not the actual value) is less than the CGT limit (£10,700 IIRC) and hold the rest to sell next year - maybe even some the following year.
There may be other complications with regards to inheritances, hopefully someone else will be able to advise further.

Is CGT paid then Inheritance tax? Or do you only get charged one? It seems like double taxation if you have to pay CGT then IHT on top.

barak

chris_m wrote: »

The main thing I would be concerned about is capital gains tax liability. Depending on the gains since the shares were purchased.....

The OP should probably have posted this on the TAX forum where there are several experts, but the executor's liability for CGT will only be on any gains made since the death of his/her mother, and I believe the tax free CGT limit for estates is half that of an individual. I also believe I'm correct in saying that losses on shares sold within a year of the death can be used to reduce liability for Inheritance Tax.