Income tax relief by gifting shares to wife

[dfabian]

Hi

I was awarded shares in the company I work for 3 years ago which on 31 Dec 2011 vested. I did not make a Section 431 election on these shares when awarded and therefore will pay income tax on the tax on the date in which I sell them (which will be September 2012 due to having to hold them for 9 months after they vest).

My question is whether I can gift part or all of these shares to my wife and benefit from any tax savings as she is on maternity leave and hence has little income. My only concern is that due to them being taxed under income tax then it would be similar to saying my wife receive part or all of my salary and therefore she should pay tax and not me - clearly this cannot happen but can I do it with the shares?

Any advice would be much appreciated.

Thanks

Dan

[pawncob]

She'll take the shares at your base cost, so the gain will be the same as if you had sold them, but she gets her exemption as well.

See:

http://www.hmrc.gov.uk/cgt/intro/gifts-inherit-divorce.htm