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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
If I transfer my shares to my daughter do I have to pay stamp duty or tax? |
If I transfer my shares to my daughter do I have to pay stamp duty or tax? Tax - Technically yes, if there is a capital gain above your annual exemption for the year based on the market value of the shares at the date of transfer. However, even if there is a gain you may be able to defer it (broadly, if your daughter is UK resident and it is a gift of a business asset - basically a personal company and not shares in a plc). The definitions to qualify for the relief are pretty specific, so if the gain is likely to be over GBP8,800 (2006/07 rate) then you need to get detailed advice. If your gains for the year (including any other chargeable disposals in the same tax year) are below that level, no tax. Stamp duty - last I knew, you technically did have to pay stamp on such a transaction, but as it is a gift it would only have been 50p. However, the stamp duty was completely revamped a couple of years ago and I do not recall how the new regime applies to gifts of shares. Hopefully someone else can help with that. Edit : Sloop John, you are mixing inheritance tax exemptions and capital gains tax rules together! You can transfer shares free between Husband and Wife. You are allowed to make gifts up to a reasonable limit in any year. If your daughter marries you can normally give an additional gift on marriage of 拢3,000 or such higher amount as may be deemed reasonable given your circumstances. So if you were Bill Gates you could give much more, but then if you were Bill Gates you probably would not want too. Children should stand on own feet, etc. If you transfer any more it will be valued at market value as a disposal and added to your Capital Gains. If your total gains exceed your allowance for the year you will be due to pay tax. I can see a tax loop hole here opening up. Marry your daughter, give her all your shares and money it will be tax free and you won't need it because you will be sent to prison for marrying your own daughter and kept free of charge at her majesties pleasure. Hope atleast some of this helps. |
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