Advice on selling shares and paying tax

Mondy

Hi,

I was looking for some advice regarding selling some shares I have in my name. The shares were given to me six years ago and I am looking to sell them to help fund a mortgage on a house. I have had a couple of independent financial advisors giving me advice on how to go about the mortgage and they both of them had different ideas regarding selling the shares. One said that I would be charged capital gains tax on the difference between the value of the shares when I received them and the value of them today. The other advisor said I would be charged a rate of tax but it is not capital gains tax. I would like to know where I stand on this, if were to sell them what kind of tax charges could I expect to be paying?

Thanks

Mondy

I have no idea of their worth when they were gifted to me, this is something I am going to have to tryu and find out.

Mondy

I have the following shares that were gifted me at the end of 2003

[FONT=&quot]313 Unilever[/FONT]
[FONT=&quot]600 GKN[/FONT]
[FONT=&quot]200 Forth Ports[/FONT]
[FONT=&quot]370 Sainsbury[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I have calculated that these are worth approx £15000 at current vale and if I were to sell them now that would be about an £8000 profit since 2003. Since I am allowed an allowance of over £8000 capital gains then I am assuming I wouldn’t have to pay any tax on this sale. Are my sums correct on this one?[/FONT]

Mondy

Another point worth mentioning is since these shares were gifted to me. Am I correct in thinking that the person who gifted them dies within 7 years of gifting them I would have to pay inheritance tax on them?

CLAPTON

you have a 9200 CGT allowance so if the gain is only 8000 then there is not tax payable.

as far a IHT is concerned they are a potentially exempt gift and if the giver dies within 7 years then their estate will have to pay tax if their total estate plus the gifts are above the IHT level (currently 300k ). But you have no personal responsibility for the IHT, its the estate that pays.

longforgotten

I am interested in what is considered the 'cost' of shares if they are transferred ....... eg

If my husband transfers some of his shares to me, do I take on the shares at their value on the stock exchange at the transfer date, or at the date he bought them ?

Does it make any difference to the 'cost' if the shares are transferred into joint names, rather than say transferring half to me in my sole name.

Elaine_Wilson

longforgotten,

Where shares are transferred at other than market value (i.e. by gift or sold cheaply) between "connected" persons then market value is used in the calculations.

However, there are special provisions for transfers between spouses (including members of civil partnerships).

Basically for the purposes of matching up the shares bought with shares sold the recipient is deemed to have acquired them on the date of transfer. However, for all calculation purposes they are acquired on the date the giver bought them and at the price they paid. So your cost price would be the same as his.

I don't think there is any difference in putting them in joint names and giving you half. In each case you will have acquired a beneficial interest in half the shares.