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CGT for shares

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Please can someone clarify, as I’ve read round and round and I’m totally doubting everything now!

I am the only beneficiary of my husband’s estate (through intestacy rules). The only asset he had were shares in the company he worked for. I sold some in the last tax year and some more in this, which have used up all of the estate’s CGT allowance and allowed me to pay off all of the estate debts. I’m now left with the decision of whether to sell the remaining shares as the personal representative, pay the CGT on the estate, and pass the money to me or pass the shares to me and pay the CGT when I sell them. Unless I’m totally misunderstanding everything, as a lower band tax payer I would only pay 10% CGT with the second option rather than 20%, but this seems unlikely! It would also take the pressure off selling them and I could conclude everything with HMRC with regards to the estate, which would be a huge relief. 

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  • Keep_pedalling
    Keep_pedalling Posts: 17,207 Forumite
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    CGT only applied to the gain (if any) in value between the date of his death and the date you sell them so it is unlikely that you will have much if any liability.

    Any prior gain his death is wiped out by his death.
  • Claude_and_Eustace
    Claude_and_Eustace Posts: 20 Forumite
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    edited 14 June at 9:59PM
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    Thank you Keep pedalling. He had 580 shares and they have increased from $52 (at death) to $88 per share and keep rising (another reason I’m not in a hurry to sell), so it is significantly over the CGT allowance. 
  • Keep_pedalling
    Keep_pedalling Posts: 17,207 Forumite
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    It would make sense to transfer the shares to you and for you to sell in your name as far as CGT is concerned. Personally I would still sell despite the CGT liability, individual shares that make those sort of gains in a short time scale tend to be volatile and  can easily fall just as fast.
  • Claude_and_Eustace
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     Thank you. Does that mean CGT is 10%? It just seems such a difference. 
  • Keep_pedalling
    Keep_pedalling Posts: 17,207 Forumite
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    Yes, although if the gain plus your income takes you into the higher rate band some of it will be taxed at 18%. 
  • poseidon1
    poseidon1 Posts: 261 Forumite
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    What is the name of the Company in question?

    I ask, because I do invest in individual shareholdings and have uninvested US dollars waiting for a new home.
  • Claude_and_Eustace
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    Yes, although if the gain plus your income takes you into the higher rate band some of it will be taxed at 18%. 
    Thank you once again. I doubt it I’ll reach that but I will bear it in mind. 
  • Claude_and_Eustace
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    poseidon1 said:
    What is the name of the Company in question?

    I ask, because I do invest in individual shareholdings and have uninvested US dollars waiting for a new home.
    The ticker is IRM
  • poseidon1
    poseidon1 Posts: 261 Forumite
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    poseidon1 said:
    What is the name of the Company in question?

    I ask, because I do invest in individual shareholdings and have uninvested US dollars waiting for a new home.
    The ticker is IRM
    Many thanks. An interesting prospect, although the price does seem to have run riot recently.
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