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Where Taxpayers and Advisers Meet

Brokerage Account - joint or not re CGT

Joined:Fri Jun 04, 2021 8:30 am
Brokerage Account - joint or not re CGT

Postby johnieb » Fri Jun 04, 2021 9:21 am


My first post and I have the following to advice on:

I work for a small firm in the UK and as part of my package I receive carry (small amount). In the past I have received small sums of cash payouts in USD (investment entity is US based) which have been gratefully received.

I have been told to expect another carry distribution in a few weeks time but this time instead of receiving cash I will receive shares. They have suggested I use either my own brokerage firm (which I do not have) or setup an account with their brokerage firm (a free account)

Once the shares have been distributed I am liable for CGT (28%) as the total gain will exceed the CGT AEA, up to here it is all clear.

As I expect the value of the stocks to increase (and I will also continue to receive future stock distributions) I like to put the shares in my wife's name upon receipt as I am hoping that a) her CGT will only be taxed 10% plus she will have her own CGT AEA

I think I will use the US brokerage firm (account is free) and will make this a joint brokerage account (my wife and I as holders) but does anyone know how I would designate these shares as being my wife's shares and not mine?

Is this possible at all or should she set up her own brokerage account and I will just tell my brokerage account to move the shares to her account (and in that case I presume there is no debate over who owns the shares (she does)

I understand that the stock price can also go down in which case I cannot offset the losses against my CGT but that is a risk I am willing to take.

I could contact an Tax Advisor to go over this but have always done my own Tax calculations (not very complicated to be honest) but it is not getting more interesting and wanted to try and resolve it myself first before going to down the Tax Advisor route

I hope the above is all clear

Many thanks

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