Transferring Shares to my Spouse

iwaddo77

It seems sensible to transfer some of my shares to my spouse so we can sell them and each receive our own CGT allowance.

My question is about how to transfer them.  They are current held by Morgan Stanley in the US, they trade on the NYSE.

Do I need to actually need to 'transfer' the shares anywhere or can I just document that I'm transferring 50% to my spouse?

If I have to transfer them where would I transfer them to? A broker in the US or can I use a UK broker.  We currently do not get any charges for holding the shares just a small commission for the sell and funds transfer to the UK.

Thank you for your help. 

TheGreenFrog

In theory and from UK perspective only, you can document transfer of beneficial ownership from you to your spouse for zero consideration and then ensure that dividends, sale proceeds etc are transferred to them.  I don't know the implications from US perspective and in any event if you adopt that route best to do so just before sale so it is a very short term arrangement.

UncleK

I have transferred shares held by X-O from me to my wife. There was an £18 transfer fee. She pays a lower rate of income tax and CGT than me, so that made sense from a dividend and eventual sale PoV. I reckon that is necessary from an HMRC perspective.
If it was me, I would first ask Morgan Stanley if I can transfer half into my wife's name. I suspect you may well have to sell them on the NYSE anyway.

TheGreenFrog

UncleK said:

I have transferred shares held by X-O from me to my wife. There was an £18 transfer fee. She pays a lower rate of income tax and CGT than me, so that made sense from a dividend and eventual sale PoV. I reckon that is necessary from an HMRC perspective.
If it was me, I would first ask Morgan Stanley if I can transfer half into my wife's name. I suspect you may well have to sell them on the NYSE anyway.

(my highlight in bold)
HMRC has to respect beneficial ownership.  Whether you want the hassle of HMRC raising a query and then having to prove transfer of beneficial ownership is a different matter, so if you can transfer registration easily then that is best course.

iwaddo77

So I've established that I can just document the transfer but do not need to share this transfer with the HMRC. My key question is whether or not I have to physically transfer the shares or can I continue to hold them on behalf of my spouse. I am waiting for a callback from the HMRC CGT technical team.

TheGreenFrog

iwaddo77 said:

So I've established that I can just document the transfer but do not need to share this transfer with the HMRC. My key question is whether or not I have to physically transfer the shares or can I continue to hold them on behalf of my spouse. I am waiting for a callback from the HMRC CGT technical team.

If you transfer the beneficial ownership to your spouse then you don't have to transfer the registration.  https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg10720

iwaddo77

Perfect thank you.