Transferring shares to spouse

marco_79

Hello,

I'm considering transferring some shares (around £31k) to my wife as she is a non tax payer and i'm a higher rate tax payer however i'm not sure of the benefits of doing this. The dividends from these shares is just under £2k pa so I believe they will still remain tax free to me next year?

Am I right in saying the only advantage in transferring them would be less CGT if we chose to sell them?

MallyGirl

yes - that is right. You each get a CGT allowance of £11k (ish) so you could save quite a lot in tax. I did this when a sharesave scheme matured and the shares had increased way beyond the option price

marco_79

Thanks, no intention of selling them just now as dividends are really good. Just wanted to check my thinking was correct.