Can I 'give' shares to my partner/sister/mum?

longwalks1

I was wondering, for example only of course , is it possible to give/donate/birthday present shares I currently hold (AIM shares) to either my partner/sister/mother if I wanted to?

xrjtg

Yes, but this counts as a disposal for CGT purposes, so you have to pay tax on any increase in market value since you bought them.

Treesie

My husband transferred shares to me via a gift transfer option. I believe you only pay CGT if you have exceeded the CGT allowance.

longwalks1

xrjtg wrote: »

Yes, but this counts as a disposal for CGT purposes, so you have to pay tax on any increase in market value since you bought them.

obviously only if the go up in value (and if i sell them), because giving some shares of equal value surely doesnt mean I'm avoiding the all important CGT?

olbas_oil

britishboy wrote: »

obviously only if the go up in value (and if i sell them), because giving some shares of equal value surely doesnt mean I'm avoiding the all important CGT?

The gift itself is a disposal, deemed to take place at market value. If those disposals (and all your other other disposals in the tax year) amount to a gain higher than £10,100 you will have to pay CGT.
The only exception would be to your spouse, where the disposal is deemed to have taken place at a value that would incur neither gain nor loss.

CLAPTON

Treesie wrote: »

My husband transferred shares to me via a gift transfer option. I believe you only pay CGT if you have exceeded the CGT allowance.

transfers between spouse are exempt from cgt

however the 'deemed ' acquisition price of your shares is the price your husband bought them at (and not the price at the time of transfer)

when you sell them, the profit will be the difference between the selling price and the price your husband bought them at.

as you say, cgt will only be payable if your total gain in the tax year exceeds the cgt allowance ; currently 10,100

leahciM

Did anyone else click on this topic to see if britishboy's girlfriend/sister/mum was the same person?

Loughton_Monkey

As far as I am aware, there is no law against giving anything (you legally own) to anyone else.

Having made a gift, though, it is very important to understand the implications. It can have implications for Capital Gains Tax, Inheritance Tax and Benefits Claiming to name just three.

longwalks1

Cheers people

so Monkey, if one of the 3 was, unfortunately and of no fault of their own, on benefits, it would not be a good idea to 'give' the gift of shares to them?

Last thing is I want to be on Jeremy Kyle with them on the 'my lady who lives in JJB tracksuits and lives off benefits stole my 1,000,000 shares and run off with the illegal immigrant postman from sierra Leone' episode

Oh, and LeahciM, its none of them actually, the vacancy is yet to be filled, so please forward you CV to me

longwalks1

CLAPTON wrote: »

transfers between spouse are exempt from cgt

however the 'deemed ' acquisition price of your shares is the price your husband bought them at (and not the price at the time of transfer)

when you sell them, the profit will be the difference between the selling price and the price your husband bought them at.

as you say, cgt will only be payable if your total gain in the tax year exceeds the cgt allowance ; currently 10,100

Thanks Clapton
So if i 'gave' as a gift for example, £35k worth of shares (that I paid £30k for a year ago - optimistic i know ), and mrsbritishboy sells them for £40k, there would be no tax to pay, even if I myself had made close to £10,100 that same year by selling shares myself?

Thanks again

JonnyBravo

britishboy wrote: »

Thanks Clapton
So if i 'gave' as a gift for example, £35k worth of shares (that I paid £30k for a year ago - optimistic i know ), and mrsbritishboy sells them for £40k, there would be no tax to pay, even if I myself had made close to £10,100 that same year by selling shares myself?

Thanks again

If you are legally "partners" ie married or other recognised equivalent then that's correct.

If she/he is simply your gf/bf (see how PC I'm being ) then that isn't correct. You'd have £15k of capital gains and your significant other would have £5k.