transferring shares to my daughter

mrichard69

My wife has 30k of AsztraZenica shares she would like to transfer to our daughter (23 years old, lower rate tax payer, 7k in savings currently). Please can anyone advise on the most tax efficient way of doing this?

eskbanker

Are those shares currently in a tax wrapper such as an ISA or will CGT planning come into play here?

DRS1

How much gain is there in the shares?  Giving them to your daughter can trigger a CGT charge for your wife.  If the gain is under £3k and she has no other gains in the tax year then nothing to worry about.
The gift will also be a PET for IHT purposes so how old and healthy is your wife?  Will she live for at least another 7 years? If yes then no need to worry about that either.
Your daughter may want to put the shares into an ISA - £20k this tax year and the rest next tax year.

xylophone

https://www.astrazeneca.com/investor-relations/shareholder-information.html

Stock transfer form under shareholder forms.



https://www.1stformations.co.uk/blog/can-i-transfer-shares-to-my-children/?srsltid=AfmBOooJd_-cbxSUdS8dq_Pu8ubjymm27M-uKxY9kBVUDrU-_syXwuFq

The "minor" does not apply in your case.

HappyHarry

mrichard69 said:

My wife has 30k of AsztraZenica shares she would like to transfer to our daughter (23 years old, lower rate tax payer, 7k in savings currently). Please can anyone advise on the most tax efficient way of doing this?

What is the reason for doing this? The answer to this will have an impact on the answers to your question.

Keep_pedalling

Assuming the shares are not held within an ISA then tho only tax issue is CGT if your wife is sitting on gains over £3,000. I would question why gift individual shares rather than cash so that your daughter can make her own investment decisions rather than be given a high risk investment. 

Alexland

DRS1 said:

Your daughter may want to put the shares into an ISA - £20k this tax year and the rest next tax year.

That wold be a sale and repurchase. But would 30k in AZN be a suitable portfolio for this 23 year old?

DRS1

Alexland said:

DRS1 said:

Your daughter may want to put the shares into an ISA - £20k this tax year and the rest next tax year.

That wold be a sale and repurchase. But would 30k in AZN be a suitable portfolio for this 23 year old?

Yes. I see your point but once it is in the ISA she can buy and sell to her hearts content without worrying about CGT.  And there is no need for the repurchase to be AZN shares.

I did once own some AZN shares but I sold them a few days before they announced they had a CoVid vaccine and they went up £10 a share.  Ho hum.