gift

bobbob_2

Hi all, I have about £4500 in shares, can I give them to family member as a gift. I deal with Halifax.
Regards Bob.

cheerfulcat

You can, but there may be capital gains tax implications.

bobbob_2

Thank's for the reply. I thought CGT was only payed above £10,100 profit.
Regards B

Annisele

You're right, but it's £10,100 per person per year - not per asset.

So, if the £4,500 in shares are your only disposal this year, you don't need to worry about CGT.

If your disposals exceed £40,400 in the year, or if your gains exceed £10,100, then you need to tell HMRC about them.

bobbob_2

Thank's for the reply.
Regards B

mac2008

There may also be a small potential IHT liability should you die within 7 years, as I think the yearly limit for gifts is £3k. A minor issue, granted, but you could avoid it by gifting 2 smaller amounts over 2 tax years if it could be an issue.

Mac

barak

mac2008 wrote: »

There may also be a small potential IHT liability should you die within 7 years, as I think the yearly limit for gifts is £3k. A minor issue, granted, but you could avoid it by gifting 2 smaller amounts over 2 tax years if it could be an issue.

Mac

Yes, but you can carry forward any unused £3k allowance from the previous tax year, so bobbob may be able to gift all the shares immediately.

Annual exemption

You can give away gifts worth up to £3,000 in each tax year and these gifts will be exempt from Inheritance Tax when you die. You can carry forward any unused part of the £3,000 exemption to the following year, but if you don’t use it in that year, the carried-over exemption expires.
The annual exemption is in addition to the other gift exemptions.

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#2