Shares in a joint account - CGT

Silvester

Hi there,

I wonder if anyone had any experience when it came to holding shares in a joint account.

Myself and my wife actively take part in the sharesave schemes on offer through our employment. These schemes begin to mature around this time next year.

Our aim is to look at moving into a larger house in a few years time and the plan is to use the money from our sharesave schemes towards this goal.

However, with the schemes maturing at different times, I am keen to keep hold of the shares until we start looking at a bigger house. Especially as the 2 companies seem to be in a good position at the moment and I can see continued growth.

I am looking into the idea of having a joint share dealing account and transferring the shares into this account when the schemes mature.

What I wondered is, if we transfer shares into the account do the shares automatically belong to each person on the account 50/50? and as such, from that point, do we both have our own CGT allowance on each 50% of the shares? and is my CGT allowance from the price my partner paid on her shares, or from the price they became mine?

Thanks in advance.

gadgetmind

I'm not aware of any joint share accounts but that's perhaps because I haven't looked.

I'd recommend opening separate S&S ISAs and transferring £15k of shares directly into these, which doesn't create a disposal for CGT purposes. You need to do this within 90 days of vesting.

You can then hold the shares separately and move them between yourselves to minimise CGT. The effective acquisition price doesn't change as you transfer between spouses so it will be the SAYE option price.

You *must* understand section 104 holdings if you do this, or if you ever hold more than one batch of shares in the same company.

http://www.hmrc.gov.uk/cgt/shares/find-cost.htm

Especially as the 2 companies seem to be in a good position at the moment and I can see continued growth.

Sorry but that scares me. You are reliant on these companies for work, still have lots of unvested shares, but still want to retain shares after exercising them?

My stance has always been to diversify ASAP to the extent that ISA transfers and CGT allowance permit. This allows me to sleep far more soundly than if I was exposed to just one or two companies.