Shares Issues - US to UK

TonyJF

My mother lives in the US and has UPS shares, managed by a group called Commonwealth Financial Network. She wants to transfer some to me, but has been told that I, who lives in the UK, need to be registered with them or a similar organisation in order to facilitate the transfer. I don't think they explained it properly, but to put it bluntly I have no idea what I am supposed to do in order to be able to receive the transfer of shares. I was hoping somebody on here would have some experience of having to do something similar. Thanks in anticipation.

george4064

Thinking of it another way, why does your mother want to transfer those shares to you?

Assuming its a gift for whatever reason, would be far easier for your mother to sell the required number of shares and transfer you the proceeds.

wmb194

Can you open an account with her broker? Otherwise you need a stockbroker which accepts in specie transfers from US brokers e.g., interactivebrokers.co.uk. Your problem is that they often dislike transfers from third parties as they worry about fraud, see IB's FAQ.

"Transfers may be rejected by IBKR, if it includes ineligible positions or if the transfer would result in the account being under margined, or by the delivering broker if the request cannot be authenticated or the account details do not match."

https://www.interactivebrokers.co.uk/en/index.php?f=40930&p=faqs

It might be easier for her to send you the money and then you buy them yourself.

maxsteam

TonyJF said:

My mother lives in the US and has UPS shares, managed by a group called Commonwealth Financial Network. She wants to transfer some to me

Commonwealth Financial Network are a broker. You need to open an account with them, or another broker, into which the shares can be transferred.

Thrugelmir

Non US residents cannot be transfered US certificated shares. You can only hold the shares either in nominee form or ADR form in the UK. Your mother will need to sell the strock and transfer you the proceeds. 

TonyJF

Thanks for these replies. She has been informed that if she sells the shares, the tax will hit her hard, which is why she wants to avoid selling.

wmb194

TonyJF said:

Thanks for these replies. She has been informed that if she sells the shares, the tax will hit her hard, which is why she wants to avoid selling.

Unless there's some exemption e.g., transfers to a spouse, transferring shares to a third party is usually considered a taxable event. Governments don't want to make it so easy for you to avoid tax. I'd check that.

Thrugelmir

TonyJF said:

Thanks for these replies. She has been informed that if she sells the shares, the tax will hit her hard, which is why she wants to avoid selling.

A transfer is a disposal, irrespective of the consideration received. The tax authorities not unsurprisingly closed this very obvious loop hole many moons ago. Your mother needs to seek proper advice rather than attempt something foolish. . 

Keep_pedalling

TonyJF said:

Thanks for these replies. She has been informed that if she sells the shares, the tax will hit her hard, which is why she wants to avoid selling.

If it was that easy everyone would do it. I doubt her CG will cost her a huge amount of tax, the rates don’t look that punishing.

https://www.bankrate.com/investing/long-term-capital-gains-tax/

TonyJF

Thrugelmir said:

TonyJF said:

Thanks for these replies. She has been informed that if she sells the shares, the tax will hit her hard, which is why she wants to avoid selling.

A transfer is a disposal, irrespective of the consideration received. The tax authorities not unsurprisingly closed this very obvious loop hole many moons ago. Your mother needs to seek proper advice rather than attempt something foolish. . 

She has sought proper advice and is not doing anything foolish, thank you. She will pay tax, but has been informed that the tax burden is higher if she sells than if she transfers.

tebbins

If she has sought advice I'm not sure what we in the forum can add.