Share Dealing Accounts and Capital Gains Tax

Tea_MAX

Hi
My wife and I both have a number of shares held in cerificates, some are large holdings from privatisations.
We have opened a joint share dealing account for ease, speed and real time dealing, but have not yet transferred the shares to the account nominees.
Before we transfer could somebody explain how capital gains tax is worked out, whether on the sale or transfer of the shares, as they will then be registered with the nominee.

cheerfulcat

Transferring the shares to a nominee account will not count as a disposal for CGT purposes.

Tea_MAX

Thanks cheerfulcat, sorry to be a pain but if I then sell them after they have been transferred to the nominee, what happens then ?

cheerfulcat

Once you sell them you may be liable to CGT on any gains. You both have an exemption of £9200 for the current tax year; you will probably also be able to claim some taper relief and ( given that they are privatisation shares ) indexation relief. There's a fairly comprehensive explanation on the directgov site, here.

leosayer

If you sell no more than £9,200 of shares each this tax year then you have no CGT worries.

abitrubbish

leosayer wrote: »

If you sell no more than £9,200 of shares each this tax year then you have no CGT worries.

Just to clarify, you can have a gain of £9,200 each per tax year (£18,400 for a couple) not a sale of £9,200.