Inherited Shares in a private company

relaxtwotribes

Cindyyyy said:

If in case I gift the shares to each of my children ( 3 of them) with equal portion.
What would be the tax implications?
Do i need to pay inheritance tax as soon as I gift the shares ? If i survive within 7 years

what about CGT? Upon transferring, do i have tax bills for that? 

Highly appreciate your kind reply 
🙏

Confirm with your adviser, as far as I know:
You will have no CGT to pay if the value of the shares at the date of gifts is the same as at the date of your husband’s death.
You will have no IHT to pay upon making the gifts.
If you then survive for 7 years the gifts will fall outside your estate for IHT purposes.
If you die within 7 years of making the gifts then the value of the gifts will be added to your estate when calculating IHT.  However, if the value of the gifts is above £325k, then the amount above £325k may benefit from taper relief.

Please note that I refer to this one aspect of your situation and a good professional adviser will take a holistic view.  That will include advice on what is the value of the shares to declare for your husband’s probate, which may vary depending on your intention with regard to possible gifts (why the value may vary is another topic entirely).

Malthusian

Before making any assumptions about Inheritance Tax, the OP should check with the company's accountant whether shares in the company qualify for Business Relief.

A property investment company would not qualify for Business Relief but a property development company may be considered to be carrying on a trade and qualify.