CGT on Joint Stock Holdings

KenC_3

My wife and I held the same investment trust in unequal proportions. We moved these holdings into a joint account and now wish to sell some of shares in the most tax efficient manner. Can anyone please explain how the sale would be viewed for CGT purposes. Should the sale be split equally or in the proportion they were held?

Additionally, assuming the later, I'd like to complete a Deed of Gift to change the underlying ownership more in favour of my wife. Are there any issues with doing this?

Aegis

From memory, if it's sold jointly then it's treated as each of you disposing of half of the asset. However, you can freely gift the shares between spouses to sell in the proportions you want to realise gains in.

KenC_3

That is a shame as it means I'd need to set up new accounts in individual names and the dealings costs will be higher. Looks like Ill need to get my calculator out and work out what is best.

Biggles

KenC wrote: »

That is a shame as it means I'd need to set up new accounts in individual names and the dealings costs will be higher. Looks like Ill need to get my calculator out and work out what is best.

If your sale would trigger CGT, the dealing costs are the least of your problems!

But seriously, unless one of you is a higher-rate taxpayer, you would surely be better off leaving it in the joint account to make sure you both fully used your £10,100 allowances?

KenC_3

I'm looking to go right through the £10,100 limit and restrict the CGT payable to 18% and maximise this for both of us. However, as our incomes are not equal we both have different amounts of the 18% level left. Hence, it would be best if I could pro rata the sale in favour of my wife who has more of the 18% level to utilise.