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    • Arpy
    • By Arpy 6th Sep 17, 1:34 PM
    • 5Posts
    • 0Thanks
    Dad wants to sell his shares.. Plot Twist!
    • #1
    • 6th Sep 17, 1:34 PM
    Dad wants to sell his shares.. Plot Twist! 6th Sep 17 at 1:34 PM
    First post... be gentle

    My elderly father would like to sell his paper shares - he has about 45K worth in one company.

    Naturally he would like to avoid CGT.

    He and I know next to nothing about shares or CGT but after a morning of reading would the following be sensible..?

    Transfer half the shares (22.5K) to his wife. Neither of them have other sums liable to CGT.

    Each sell half now and the other half April 2018? This way there would be 4 transactions total, each producing a profit under the 11300 CGT allowance.

    Seems too easy...

    Any pointers greatfully appreciated. Especially who to approach to sell the things for him!

    Apologies if I've vastly over simplified things
    Last edited by Arpy; 07-09-2017 at 11:21 AM.
Page 2
    • Sean473
    • By Sean473 7th Sep 17, 11:35 PM
    • 82 Posts
    • 34 Thanks
    Wow. All those answers are so helpful - thank you.

    As for IHT, I don't think their estate would top 600k so probably not an issue. Of course one can't predict the future but I don't imagine it will be relevant.

    Dad likes the suggestion of them opening a joint nominee account with mum and then them each giving me and sis 11250 each this year and the same again (say) in Apr 18, as above.

    I appreciate this a nice problem to have and we are so grateful for all your help.
    Originally posted by Arpy
    Have you looked at doing a Bed and ISA? That might help you avoid CGT...
    • cloud_dog
    • By cloud_dog 8th Sep 17, 9:32 AM
    • 3,769 Posts
    • 2,238 Thanks
    Have you looked at doing a Bed and ISA? That might help you avoid CGT...
    Originally posted by Sean473
    I'm not sure bed & ISA will avoid CGT as you will need to crystallise your gain (sell) before re-buying in the ISA.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • AnotherJoe
    • By AnotherJoe 8th Sep 17, 9:36 AM
    • 9,820 Posts
    • 10,962 Thanks
    Have you looked at doing a Bed and ISA? That might help you avoid CGT...
    Originally posted by Sean473
    I don't see how, and they don't have to do anything fancy other than split over two tax years. But even so, can you explain how you think putting them in an ISA would help?
    • xylophone
    • By xylophone 8th Sep 17, 9:45 AM
    • 25,747 Posts
    • 15,215 Thanks

    A Bed & ISA is a way of transferring assets into an ISA so that future investment growth and income is sheltered from tax. It is a helpful way of using up some or all of an ISA allowance if no cash is available, or to tidy up small or neglected holdings whose income would otherwise have to be declared on a tax return. However, the process involves selling the investments and then buying them back within the ISA wrapper - so the sale crystallises any gain or loss made for capital gains tax (CGT) purposes.

    Perhaps poster was thinking of treatment of transfer to ISA in Sharesave type schemes?
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