Trsnsfering shares in an LTD to daughter.

[John A]

Hi

I have a rental property held in an LTD. I am the sole director and shareholder. The company holds a residential buy to let property. No mortgage but a loan from a connected company as a creditor.

If I transfer tall he shares to my daughter at no cost, or perhaps nominal value is there any taxes I am liable to? I know that I have to outlive the 7 years for inheritance tax.

[bd6759]

You’ll be liable to capital gains tax on the value of the shares.

[John A]

Thank you. So the price market value of the property. And I was misinformed by being told I could transfer the shares them at the price I paid, £100.

[AGoodman]

You can transfer the shares for free (or any other price you wish), but the value for CGT is the market value of the shares. That will take into account the value of the property as well as any company debt.