Capital Gains

Hitting

If A transfers an equity fund to B, does B pay cap.gains if sold, on any accrued gains from the day of transfer or from the original purchase day by A?

eskbanker

Are A and B spouses or civil partners?  If so, then the CGT liability for a gift from one to the other relates to the original purchase date: https://www.gov.uk/capital-gains-tax/gifts

Hitting

No,....relationship is Grandparent to Grandchild.

eskbanker

Hitting said:

No,....relationship is Grandparent to Grandchild.

....in which case the transfer is treated as a disposal by the grandparent, who is then subject to CGT on any gains since acquisition, and any gains by the grandchild are based on the value at the time of the transfer.  The disposal may also ultimately bring other taxes such as IHT into play if it's processed as a gift.

Hitting

So a gain by the gparent is that based on acquisition price and price at transfer, and gain by gchild is based on price at transfer and that when sold by gchild?....is this the case?
i am also aware of IHT implications.

eskbanker

Hitting said:

So a gain by the gparent is that based on acquisition price and price at transfer, and gain by gchild is based on price at transfer and that when sold by gchild?....is this the case?

Yes, the transfer is an asset disposal by the grandparent and an acquisition by the grandchild.

Robert_McGeddon

OP, you've posted in the ISAs and tax-free savings section. Is your fund inside an ISA?

Hitting

Robert_McGeddon said:

OP, you've posted in the ISAs and tax-free savings section. Is your fund inside an ISA?

No...

Hitting

eskbanker said:

Hitting said:

So a gain by the gparent is that based on acquisition price and price at transfer, and gain by gchild is based on price at transfer and that when sold by gchild?....is this the case?

Yes, the transfer is an asset disposal by the grandparent and an acquisition by the grandchild.

Thank you...if the gparent purchased the initial investment,then appointed ‘Bare’trustees,and these trustees transferred the investment to gchild,is it the gparent who is accountable or the trustees for any gains accrued attransfer?

eskbanker

Hitting said:

eskbanker said:

Hitting said:

So a gain by the gparent is that based on acquisition price and price at transfer, and gain by gchild is based on price at transfer and that when sold by gchild?....is this the case?

Yes, the transfer is an asset disposal by the grandparent and an acquisition by the grandchild.

Thank you...if the gparent purchased the initial investment,then appointed ‘Bare’trustees,and these trustees transferred the investment to gchild,is it the gparent who is accountable or the trustees for any gains accrued attransfer?

I'd have thought that the point of transfer of ownership is effectively when the trust was set up in this scenario, rather than its maturity, but I'm not sure about that (and it could be both) - was any legal/financial advice or assistance obtained when this was being set up?

Hitting

No legal/financial advice obtained....purchase and trusteeship were executed at same time, ie when bare trust set up.
Dont know whether this helps?