Captial Gains on transfer of shares

noh

heleng27 wrote: »

Thanks for this, so could well look like the money has to be paid.

Does anyone know what affect this could have on benefits. Even though no money is involved would DWP look at it as if I earned this money. I'm worried this is benefit fraud

It's possible tax is due but you need to take advice from another competent accountant.

The benefits question is something I can't answer.

pjclar02

noh wrote: »

Read the link I have given in my post above.
"

I'm aware of the market value rules for gifts under CGT. However, I maintain my stance that a gift of shares would normally be unlikely to give rise to a CGT charge for the donor because either:

1) the shares will be worthless; or
2) the donor and donee will jointly claim holdover relief.

It is very rare that you will come across a situation where someone willingly gives away shares that carry any significant value, and do not agree with the recipient of those shares that holdover relief would apply.

This is certainly the first time I have encountered it in my ten years as a tax consultant - that makes it "unlikely" in my books!

noh

pjclar02 wrote: »

I'm aware of the market value rules for gifts under CGT. However, I maintain my stance that a gift of shares would normally be unlikely to give rise to a CGT charge for the donor because either:

1) the shares will be worthless; or
2) the donor and donee will jointly claim holdover relief.

It is very rare that you will come across a situation where someone willingly gives away shares that carry any significant value, and do not agree with the recipient of those shares that holdover relief would apply.

This is certainly the first time I have encountered it in my ten years as a tax consultant - that makes it "unlikely" in my books!

We don't know the value of the shares the OP gave away. If the accountant involved calculated that there was a CGT liability of £1700 after all applicable reliefs then he at least considered them to be of a significant value. Of course he could be wrong.

I take your point concerning holdover relief but it seems that the OP took no advice and had no concept of the value or potential consquences of the transaction.

pjclar02

[QUOTE=noh;50947423
I take your point concerning holdover relief but it seems that the OP took no advice and had no concept of the value or potential consquences of the transaction.[/QUOTE]

Unfortunately that does indeed seem to be the case in this instance.