Can you transfer shares to a brother / sister?

yorkyuk

Hi,

I know you can transfer shares to a Husband / Wife in a tax efficient way, but can you transfer shares to a brother / sister in a tax efficient way?

Regards...

Daniel_Elkington

Hi there, interesting question.

Short answer is no.

Long answer is actually a question:

When did you acquire said shares?
What were the original acquisition costs (the cost at purchase and any other associated costs such as stamp duty, dealers costs, PTM levy etc.)
What is their current market value? If unknown tell me the company and the number of shares you have.

Are you realising any other capital gains/losses this year?

Are they shares in a public company (one registered with the London Stock Exchange or similar) or is it a private company?

Are they shares in a closed company?

Finally ... (for a bit of background)

Why do you want to transfer the shares to your siblings?

CLAPTON

if they are 'normal, ordinary' shares and you have made capital gains under the threshold (10,600) and you are giving them away with no consideration, then probably yes

but tax is all about detail which you haven't provided.

yorkyuk

The shares are from a Company Share Scheme and they will make capital gains over my personal allowance if they were to be sold.

The Company is a public listed company in the FTSE 100.

somethingcorporate

You get a new allowance every year, can you not just split up the timing of the selling of the shares?

yorkyuk

somethingcorporate wrote: »

You get a new allowance every year, can you not just split up the timing of the selling of the shares?

I have a good understanding on that side of things, but I was just interested to know if you can Gift Shares to a Sibling like you can with a Spouse?

Daniel_Elkington

If you are married and the gain is less than the £21,200 you could assign half of the shares to your spouse and then gift them all.

Potentially, as the new tax year is approaching, you could use two allowances twice to realise £42,400 of gains.

If you have any other losses that you can use to offset then this would be advantageous to do so now (such as transferring at risk assets into ISA etc.)

CLAPTON

yorkyuk wrote: »

I have a good understanding on that side of things, but I was just interested to know if you can Gift Shares to a Sibling like you can with a Spouse?

yes you can gift them to a sibling but the capital gains tax will be payable as if you sold them

yorkyuk

Thanks All for your input, I think you have provided the answer I needed...

sabretoothtigger

Commision charges apply to ownership changes I think so it seems there is little advantage over selling to market

Glen_Clark

sabretoothtigger wrote: »

Commision charges apply to ownership changes I think so it seems there is little advantage over selling to market

Only if the certificates are held by a fee charging broker like in CREST. This is another advantage of keeping the certificates yourself - no fees. All you need to do is notify the Company Registrars of a change of ownership and send them the certificates - if the shares are a gift there is no stamp duty, so nothing to pay at all. There are certain things you have to tell the Registrars and sign so its best done on a pre printed form. The Company Registrars will probably have one you can download - it will be something like this: http://www.sfsgo.com/documents/share-tranfer-form.pdf
(If the shares are a gift just write 'Gift Inter Vivo' in the consideration money box.)