Tax rules on US shares transferred and then gifted

ALIDOG
ALIDOG Posts: 9
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edited 12 February at 1:55PM in Cutting tax
HI, I'm hoping someone might be able to clarify whether this is possible.
My wife has some US shares, that we would like to sell and transfer into her Isa. the amount could be over her ISA allowance. 
She would then GIFT me the remainder, which I would like to transfer to my ISA. It would all be done through holding accounts with a broker. so the shares would only be bought & sold when the are transferred to the ISA's.
Would this be possible? and if so would there be any CGT ot IH tax to pay/ declare?

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  • Keep_pedalling
    Keep_pedalling Posts: 16,238
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    edited 12 February at 11:31AM
    She may have a CGT liability when she sells them, but IHT does not come into it. The current CG allowance is £6k but drops to £3k on 6th April, so better to sell sooner than later.

    Is there a reason you posted here rather than on the savings board?
  • ALIDOG
    ALIDOG Posts: 9
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    I'm new and didn't know where to post sorry!

  • ALIDOG
    ALIDOG Posts: 9
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    If they are transferred in an ISA then isn't free from CGT?

  • Keep_pedalling
    Keep_pedalling Posts: 16,238
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    ALIDOG said:
    If they are transferred in an ISA then isn't free from CGT?

    No, you can’t transfer shares from non ISA accounts to an ISA so they have to be sold (at which point CGT takes affect) then you can then add the cash to an ISA.
  • ALIDOG
    ALIDOG Posts: 9
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    So could I use both her £6K allowance and then she gift me £6K to use my allowance to save any 
    CGT?
  • eskbanker
    eskbanker Posts: 29,971
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    ALIDOG said:
    So could I use both her £6K allowance and then she gift me £6K to use my allowance to save any CGT?
    Effectively, yes - if the gains since her original acquisition are less than £12K then you can split the portfolio by gifting and use both CGT allowances:

    https://www.gov.uk/capital-gains-tax/gifts
  • Ferro
    Ferro Posts: 135
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    ALIDOG said:
    So could I use both her £6K allowance and then she gift me £6K to use my allowance to save any 
    CGT?
    To maximise savings £6000 of GAINS, not share value, should be gifted. 

    Presumably the shares had a cost and, therefore, shares worth £6000 would not utilise the full allowance.
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