Nominee<>Certificate transactions=no CGT?

C_Mababejive

No doubt been covered before but can someone confirm that if i move paper shares to a nominee account or indeed from nominee into paper, it isnt a disposal for CGT purposes?

Any HMRC ref docs?

I had a google but didnt spot anything

Ta

bowlhead99

A nominee is merely holding your assets in his name for practical purposes but giving you full rights and beneficial ownership - effectively a bare trust agreement with you practically owning and controlling everything - they act on your instructions in relation to the shares and income and gains made on them while in their name are "yours" for tax purposes as if you had been named on the company share register yourself.

As such there is no "disposal" or disposal proceeds when you dispose of them from your direct ownership into his nominee ownership with your beneficial ownership.

The situation would be different if you were moving therm into a Sipp where the pension trustee would acquire them from you for market value (or if you sold them, crystallising an actual gain or loss and then put the resulting cash into a SIPP or ISA or "real" trust which bought them back inside that wrapper.)

C_Mababejive

Thanks once again,, im getting twitchy about volume of nominee holdings so thinking of certing some of them.

bowlhead99

Yeah, you can move in either direction without issue. Most brokers take your certificated shares for free because they are happy to get your business onto their platform, but will charge an admin fee to arrange a transfer the other way and obtain a certificate from the relevant company registrars when you move the other way. But if the amounts you are talking about are big enough to scare you, those fees (or indeed the higher charges from brokers if dealing directly in paper shares) are probably immaterial.

Also, no stamp duty payable for the reregistration of ownership for the same reason there's no CGT: it is not actually a sale or real "disposal".