The £3000 annual gift limit

eskbanker

Keep_pedalling said:

Bigwheels1111 said:

I could be wrong but if she gave them 3k now and 2k in April after the tax year started would it not solve the issue.

Except there is no issue to solve.

And in any case the £3K limit (if it was applicable) is a total, so gifting £10K (i.e. two lots of £5K) would need to be done over four tax years (or three with carry-forward)....

Richie7

Hi,

Sorry to bump an old thread, but thought it better than creating a new one.

My mum wants to gift £3,000 of her shares to my sister, using her £3,000 annual gift allowance.

Will she be liable to pay CGT even if she's using this allowance?


Thanks.

EthicsGradient

Richie7 said:

Hi,

Sorry to bump an old thread, but thought it better than creating a new one.

My mum wants to gift £3,000 of her shares to my sister, using her £3,000 annual gift allowance.

Will she be liable to pay CGT even if she's using this allowance?


Thanks.

Gifts of shares are valued at their market price on the day of transfer, as if the giver has sold them at that price, and the recipient bought them. If this is the only sale your mum makes in this tax year, then she can't have made a gain of over £3k, whatever they cost her, so she wouldn't pay any CGT (but if she did other stuff too, you'd have to add it in and work out the actual gain).  Your aunt will have a "cost basis" of their worth, around £3k.

eskbanker

Richie7 said:

My mum wants to gift £3,000 of her shares to my sister, using her £3,000 annual gift allowance.

Will she be liable to pay CGT even if she's using this allowance?

The £3K annual gift allowance relates specifically to exemption from inheritance tax, but doesn't exempt the transaction from capital gains tax.  However, as above, there is also (coincidentally) a £3K annual CGT allowance, so this may suffice to avoid any CGT actually being due....

Keep_pedalling

Richie7 said:

Hi,

Sorry to bump an old thread, but thought it better than creating a new one.

My mum wants to gift £3,000 of her shares to my sister, using her £3,000 annual gift allowance.

Will she be liable to pay CGT even if she's using this allowance?


Thanks.

For future reference, bumping up an old thread is never better than starting a new one.