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Transfer of Capital gains to spouse
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huseyin ekren
Posted: 29 October 2010 06:44:18(UTC)
#1

Joined: 07/09/2010(UTC)
Posts: 3
I hold a portfolio of shares and would like to transfer some of my Capital Gains to my spouse . I can not however find any information about the actual mechanics of doing this . Do i transfer a particular share to my spouse , via a share transfer form , for her to sell ? Do i sell the shares and simply tell Inland Revenue I am transferring the Gain to my spouse ? If anyone out there has done this i would very much appreciate your comments ...
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Gadgetmind
Posted: 29 October 2010 14:44:35(UTC)
#2

Joined: 22/10/2010(UTC)
Posts: 2
You need to complete a CREST transfer form and send this and the certificate off to the relevant registrar. (See web site of company shares are in to see who this is.)

When your wife disposes of the shares, CGT will be levied against her as if she had owned the shares from the original acquisition date at the original cost.

I guess you know all about your CGT allowances, and the 18% band before you hit the main 28% taxation level, but ask away if not. Also note that if the shares are approved options you can (with 90 days of issue) use them to feed your ISA and there is no CGT!

Ian
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Chris Marshall (Citywire)
Posted: 01 November 2010 11:38:30(UTC)
#3

Joined: 24/06/2010(UTC)
Posts: 48
Hi Huseyin

I asked Mike Deverell, an investment manager at Equilibrium Asset Management, for an answer to your question. You can see his response here: http://www.citywire.co.u...-money-latest-news-list

He also offers some suggestions on keeping your CGT bill down in the future.

Hope that helps

Chris




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huseyin ekren
Posted: 19 November 2010 07:54:36(UTC)
#4

Joined: 07/09/2010(UTC)
Posts: 3
Thank you Gadgetmind for your reply of 29 Oct . Can I assume the proceeds of any sale made by my wife can be transferred to me subsequently and this is also allowed . Kind regards ... Toker
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Gadgetmind
Posted: 19 November 2010 08:28:43(UTC)
#5

Joined: 22/10/2010(UTC)
Posts: 2
Yes, no problem. All transfers between spouses are CGT exempt whether it's shares or cash.

There is an interesting wrinkle here if one spouse holds shares with a lot of latent CGT and the other has a terminal illness. The shares can be transfered to the dying spouse and upon death their estate is inherited by the surviving spouse (no IHT between spouses) and the assumed acquisition value of the shares is effectively "reset". This means the surviving spouse can then dispose of them without incurring a CGT liability.

Ian
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