CGT on spousal shares transfers
Posted: May 24th, 2023, 12:09 pm
Hello All
Have searched high and low and still no wiser so, before throwing the dart towards the wall holding the dartboard, thought I'd ask here for thoughts as I remembered I'd received good advice previously on another topic.
Situation is thus;
Now deceased father-in-law bought some shares in National Grid, Centrica (ex, British Gas) and Shell decade ago and must have transferred to his daughter, my (then and still) wife, with our two children "designated" on them in equal proportions. They were in paper certificate form.
There they sat, until I found them and determined that that some were defunct due to corporate actions and some were still valid.
We decided that we should transfer them to me in my name for £0 and hold them in my online GIA for easier management. They were sold into Rolls Royce shares, I know, just before Ukraine...ugh! Sum involved is ca. £5k.
With decreased CGT allowance, I feel she should "own" them herself and was wondering the most tax efficient way to transfer them to her.
If sell them in my name and give her the proceeds, the CGT will be calculated from her father-in-laws death or date of purchase I believe.
If I transfer them to her for £0, she herself will likewise be charged upon sale from her dads death or date of purchase I believe.
The thought is to not sell them but get them into an ISA in her name.
Sorry to have taken so long to get to the question but thought you might desire the background to decide liability/options.
Here it is; although a share cannot be transferred from a GIA to an ISA held by the same person without being sold and repurchased, can it be so transferred from person A's GIA to person B's ISA, or must it go to person B's GIA before being sold/repurchased after 30 days in person B's ISA?
If the latter, as I suspect, processing/trading costs, about £30, suggest fees aren't too relevant, it's the CGT liability am trying to minimise so will possibly sell tranches yearly in her GIA before moving them to her ISA.
Phew!
Any contributions thankfully received.
Have searched high and low and still no wiser so, before throwing the dart towards the wall holding the dartboard, thought I'd ask here for thoughts as I remembered I'd received good advice previously on another topic.
Situation is thus;
Now deceased father-in-law bought some shares in National Grid, Centrica (ex, British Gas) and Shell decade ago and must have transferred to his daughter, my (then and still) wife, with our two children "designated" on them in equal proportions. They were in paper certificate form.
There they sat, until I found them and determined that that some were defunct due to corporate actions and some were still valid.
We decided that we should transfer them to me in my name for £0 and hold them in my online GIA for easier management. They were sold into Rolls Royce shares, I know, just before Ukraine...ugh! Sum involved is ca. £5k.
With decreased CGT allowance, I feel she should "own" them herself and was wondering the most tax efficient way to transfer them to her.
If sell them in my name and give her the proceeds, the CGT will be calculated from her father-in-laws death or date of purchase I believe.
If I transfer them to her for £0, she herself will likewise be charged upon sale from her dads death or date of purchase I believe.
The thought is to not sell them but get them into an ISA in her name.
Sorry to have taken so long to get to the question but thought you might desire the background to decide liability/options.
Here it is; although a share cannot be transferred from a GIA to an ISA held by the same person without being sold and repurchased, can it be so transferred from person A's GIA to person B's ISA, or must it go to person B's GIA before being sold/repurchased after 30 days in person B's ISA?
If the latter, as I suspect, processing/trading costs, about £30, suggest fees aren't too relevant, it's the CGT liability am trying to minimise so will possibly sell tranches yearly in her GIA before moving them to her ISA.
Phew!
Any contributions thankfully received.