Transferring Shares from Mum to Me

Snuffy_2

Hi All,

I know this may sound dim, but was wondering if any of you could help.

My mum has a couple of grand in shares and she's wanting to put them in my name. I do know she pays tax on the shares which comes directly from the money she has invested, but will I get taxed if she transfers them to me?

Thanks

Snuffy.x.

CLAPTON

She can transfer these to you using a stock transfer form..
You can download these for free.
The transfer counts as a disposal from your mother point of view and so she is liable to pay CGT.
However, if her total gains for the year are less than 9,200 then there will be no tax to pay.

You have no liability for tax on the transfer.

I dont know why you say she is taxed on her existing shares... unless she is a higher rate tax payer, there should be no additional tax to pay on her dividends.

Snuffy_2

Hi Clapton,

Thanks very much for this. She was worried I'd end up footing her tax bill for the transfer. She does't earn over that amount per anum so all should be palin sailing.

Thanks again.

Snuffy.x.

digerati

Snuffy,

You can download and print a Stock Transfer Form (at the bottom of the page), have your mum fill in the details and send it off to the registrar who will issue new shares in the your name.

Stamp Duty

As a general rule if no consideration or money changes hands, then the transaction is not liable for stamp duty. Gifts within a family come under category L and should be so noted in the stamp duty declaration on the reverse of the Stock Transfer Form.

The transfer form and share certificate (totalling at least the number of shares on the transfer) should be forwarded to the Registrars. Do not worry if the share certificates represent more shares than the transfer. If this is the case, the Registrars will send you a share certificate representing the balance.

Snuffy wrote: »

She was worried I'd end up footing her tax bill for the transfer. She does't earn over that amount per anum so all should be palin sailing.

A common misunderstanding - capital gains tax (CGT) isn't connected to income tax so it doesn't matter how much your mum earns. All that matters is that you don't make a profit over £9200 in a tax year. As long as the market value of the shares minus the cost of buying the shares is less than £9200 - no tax is payable. If the amount is over £9200, your mum can spread the gift over several years so no CGT is payable.