Help needed on limiting Capital Gains Tax.

mpeill

I have been investing in a company run employee share scheme and over the years invested:
2005-2006 £1281
2006-2007 £2585
2008-2008 £3307
2009-2010 £3295
(yes there is a gap in the middle years)
Totalling £10468
The value at todays price is approx £30000
My salary borders normally on the edge of the lower/higher rate tax band.
I'm aware of the £10000(ish) per year exemption, and the first in / last out gains calculation for tax purposes. This still leaves me with a taxable capital gain if I were to sell the shares, but I'm not sure of the rate of tax I would have to pay.
Is it possible to make a gift of the shares to my wife, and then for her to sell the shares? She has no income of her own.
Would this save us from paying any capital gains tax?
If so, how do I transfer shares to another person...is this possible without selling them.
All the above is my own understanding, so please put me right on any assumptions I've made wrongly.

BLB53

Gifts between H & W are exempt from tax so it would make sense to transfer half the shares into her name.
CGT is payable on the profits so if you do the transfer then sell all the shares there should be no tax to pay as your profits will be only £10K each and you each have allowances of £10,600.
Alternatively you can keep the shares in your name and sell them over a number of years, realising just enough profit on each sale to keep within the annual CGT limits.

BoGoF

What type of share scheme is it?

Have you actually acquired the shares yet as your first hurdle may be income tax on the exercise of the share option (depending on what type of scheme)

mpeill

Thanks for that. One thing I didn't mention is that I plan to retire in just over a year's time, and am not allowed to hold the shares (at least in the particular investment company) after retirement. I therefore need to deal with the whole holding during this coming tax year.

mpeill

The shares offer price was set during November each year, and we had the option of buying the shares at that fixed price one year later, which I did as detailed in the first post, if that helps.

calypso_rhapsody

Yes you can gift shares to your wife and use her allowance too - unless the rules of your scheme prohibit it. A while since i've done this - used to be a share transfer form to fill in with a gift box to tick but i suspect it may be a bit more high tech these days!! The scheme administrator may be able to help - that would be my first port of call.