Can shares be transferred to a family member without tax implications?

ConfusedCF

Hi,
My Mum and I both have Stocks & Shares ISAs (in our own separate accounts) which are held via an online trading platform. The shares originally cost us around 15k each several years ago but have now unfortunately crashed & are worth a few hundred at present. The platform charges a £9.99 admin fee per month, which seems to be a waste of money as we both don't trade regularly and don't plan to. We both want to hold on to the shares we have though, so my question is: is it possible to close her ISA shares account and transfer her shares into my account? So I would hold all the shares and therefore only I would be paying the admin fee going forward. And if so, are there any tax implications involved that I should be aware of?
Many thanks.

masonic

No it is not possible to transfer her shares into your ISA without her selling them, gifting you the money and you paying it into your ISA and repurchasing the shares. The shares would then be legally yours, and the only tax implications would be that the gift might be considered part of her estate for inheritance tax purposes should she die within a few years of making the gift, and the money would count towards your total assets if claiming means tested benefits.

eskbanker

ConfusedCF said:

The shares originally cost us around 15k each several years ago but have now unfortunately crashed & are worth a few hundred at present. [...] We both want to hold on to the shares we have though

Why?  Blind optimism that they'll turn into star performers despite 95+% losses thus far?  Granted, buying high and selling low is rarely a successful technique but sometimes you just have to cut your losses - what is your investment strategy?

Mickey666

A ‘trading platform’ suggests just that - trading.  If the OP is simply holding on to shares through thick and thin, and mainly thin it seems, then what’s the point of paying a monthly fee for a trading platform.  It costs nothing to simply hold on to shares.

MDMD

Mickey666 said:

A ‘trading platform’ suggests just that - trading.  If the OP is simply holding on to shares through thick and thin, and mainly thin it seems, then what’s the point of paying a monthly fee for a trading platform.  It costs nothing to simply hold on to shares.

Most platforms hold the shares as a nominee and charge a fixed or percentage monthly custody fee regardless of activity

Mickey666

MDMD said:

Mickey666 said:

A ‘trading platform’ suggests just that - trading.  If the OP is simply holding on to shares through thick and thin, and mainly thin it seems, then what’s the point of paying a monthly fee for a trading platform.  It costs nothing to simply hold on to shares.

Most platforms hold the shares as a nominee and charge a fixed or percentage monthly custody fee regardless of activity

Yes, but my point was there’s no need to even use a ‘trading platform’ simply to hold shares.  I’ve held various shares for decades and never paid a penny for the privilege of simply holding them.  I’m not saying platforms don’t have their place, but that place may not be appropriate for long-term holdings that the OP seems to require. 

masonic

Mickey666 said:

MDMD said:

Mickey666 said:

A ‘trading platform’ suggests just that - trading.  If the OP is simply holding on to shares through thick and thin, and mainly thin it seems, then what’s the point of paying a monthly fee for a trading platform.  It costs nothing to simply hold on to shares.

Most platforms hold the shares as a nominee and charge a fixed or percentage monthly custody fee regardless of activity

Yes, but my point was there’s no need to even use a ‘trading platform’ simply to hold shares.  I’ve held various shares for decades and never paid a penny for the privilege of simply holding them.  I’m not saying platforms don’t have their place, but that place may not be appropriate for long-term holdings that the OP seems to require. 

OP seems to want to hold within a S&S ISA, presumably for the tax benefits.

refluxer

£120 a year for holding shares that are only worth a few hundred pounds in an ISA ? Surely that ongoing cost completely overshadows any future capital gains and ongoing dividend allowance tax benefits that a S&S ISA would give or am I missing something ?

I'm not overly familiar with S&S ISAs and how they operate but if you're desperate to keep hold of them in an ISA, are you at least able to transfer to a provider with cheaper fees ? I would have thought even having to sell and buy back might work out cheaper !

masonic

Yes, they could probably be held for free at a provider like Trading212, presuming they are nothing too obscure. Even iWeb would just cost the one-off £25 account opening fee. If the existing ISA manager is Interactive Investor (as the fee level implies), then they could be transferred in specie for free.