using wife's cgt allowance when selling shares


R

Robert

Please can someone advise one this. I have a holding of ordinary
shares which I inherited in 2003. They currently show a profit
(relative to the proabte valuation) that is larger than the current
CGT allowance of £8.800. I would like to sell them and have the gain
charged to my wife's CGT allowance.

On the selftrade website it says: "Married couples can share their
annual capital gains tax allowances."

Is this really so? Can I simply sell the shares and assume an
allowance of 2*£8,800 or do I need to transfer the shares to her and
let her sell them?

thank you for your help,

Robert
 
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S

Stickems.

You could sell some of the shares before April 6th and some of the shares
after April 5th to take advantage of two years allowances.


Please can someone advise one this. I have a holding of ordinary
shares which I inherited in 2003. They currently show a profit
(relative to the proabte valuation) that is larger than the current
CGT allowance of £8.800. I would like to sell them and have the gain
charged to my wife's CGT allowance.

On the selftrade website it says: "Married couples can share their
annual capital gains tax allowances."

Is this really so? Can I simply sell the shares and assume an
allowance of 2*£8,800 or do I need to transfer the shares to her and
let her sell them?

thank you for your help,

Robert
 
R

Robert

You could sell some of the shares before April 6th and some of the shares
after April 5th to take advantage of two years allowances.

That is true, but I would prefer to make maximum use of this years
allowances as they will be lost if not used.

Robert
 
R

Rob graham

Please can someone advise one this. I have a holding of ordinary
shares which I inherited in 2003. They currently show a profit
(relative to the proabte valuation) that is larger than the current
CGT allowance of £8.800. I would like to sell them and have the gain
charged to my wife's CGT allowance.

On the selftrade website it says: "Married couples can share their
annual capital gains tax allowances."

Is this really so? Can I simply sell the shares and assume an
allowance of 2*£8,800 or do I need to transfer the shares to her and
let her sell them?

thank you for your help,

Robert

If you sell or dispose of them to her there will be no CGT payable at the
time of this disposal. However, when she sells them the gain will be deemed
to be from when you yourself acquired them.

Rob Graham
 
M

Martin

Please can someone advise one this. I have a holding of ordinary
shares which I inherited in 2003. They currently show a profit
(relative to the proabte valuation) that is larger than the current
CGT allowance of £8.800. I would like to sell them and have the gain
charged to my wife's CGT allowance.

On the selftrade website it says: "Married couples can share their
annual capital gains tax allowances."

Is this really so? Can I simply sell the shares and assume an
allowance of 2*£8,800 or do I need to transfer the shares to her and
let her sell them?

thank you for your help,

Robert

==================


You and wife can't "share" CGT allowance (unless shares are jointly held).

So you need to xfr some to wife.

Speak to Coy Sec (if private) or registrar (if public) to check how to
effect xfr at no consideration (i.e. free) in order to avoid stamp duty.

Should be straightforward from thereon.
 
P

Peter Saxton

Please can someone advise one this. I have a holding of ordinary
shares which I inherited in 2003. They currently show a profit
(relative to the proabte valuation) that is larger than the current
CGT allowance of £8.800. I would like to sell them and have the gain
charged to my wife's CGT allowance.

On the selftrade website it says: "Married couples can share their
annual capital gains tax allowances."

Is this really so? Can I simply sell the shares and assume an
allowance of 2*£8,800 or do I need to transfer the shares to her and
let her sell them?

thank you for your help,

Robert
Have you got the link for the quote?

They state the position correctly here -

"Gifting shares to family or friends is considered as a disposal for
capital gains tax purposes with the donor liable for tax based on
market value on the day of proposed transfer. The book cost allocated
to the new holder will be this value assigned to the disposal. Spouse
transfers are permitted without incurring tax liabilities. This makes
it possible to make full use of both allowances. However, these also
transfer the original book cost and history."

http://www.selftrade.co.uk/education/zone/stockmarket_tax.phtml
 
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R

Robert

Have you got the link for the quote?
It's where the say there is no advantage in having a joint holding
from the point of view of tax:


http://www.selftrade.co.uk/services/faqs/JoinDealAcc.phtml

"What are the tax implications of holding assets in a joint dealing
account?
A joint dealing account offers no additional tax benefits. Married
couples can share their annual capital gains tax allowances. Other
partners are responsible for their individual tax positions"

They state the position correctly here -

"Gifting shares to family or friends is considered as a disposal for
capital gains tax purposes with the donor liable for tax based on
market value on the day of proposed transfer. The book cost allocated
to the new holder will be this value assigned to the disposal. Spouse
transfers are permitted without incurring tax liabilities. This makes
it possible to make full use of both allowances. However, these also
transfer the original book cost and history."

http://www.selftrade.co.uk/education/zone/stockmarket_tax.phtml


thank you Peter, that is a fuller and unambiguous statement. All I
need to know is whether selftrade will do such transfers. I will ask
them.

Robert
 
P

Peter Saxton

It's where the say there is no advantage in having a joint holding
from the point of view of tax:


http://www.selftrade.co.uk/services/faqs/JoinDealAcc.phtml

"What are the tax implications of holding assets in a joint dealing
account?
A joint dealing account offers no additional tax benefits. Married
couples can share their annual capital gains tax allowances. Other
partners are responsible for their individual tax positions"
That's very ambiguous. You don't share your allowance you share the
gain in this situation.
 
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No, you cannot share CGT with your wife untill or unless you both own these shares. You must transfer these shares to her only then she wil be entitled for the CGT after selling them. Hope this helps.
 

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