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Where Taxpayers and Advisers Meet

CGT - family selling listed shares to family at discounted rate.

divot
Posts:7
Joined:Wed Aug 06, 2008 3:27 pm
CGT - family selling listed shares to family at discounted rate.

Postby divot » Wed Nov 17, 2021 11:44 am

Hi all,
A long time ago my uncle bought off "SID" some British gas shares now he wants to sell me them at a discounted price.
Just for simplicity, putting aside all the limits and thresholds and keeping the figures very simple for illustration.
With whom do the CGT liabilities lie: -
• Purchased for £1,000
• Market value now £10,000
• Sells me them for £2,000
For simplicity ignoring all allowances, would I be correct in assuming that: -
He would be responsible for CGT on gain of £1,000 (difference between purchase and sell prices)
If the value never ever changed then I would be responsible when I disposed of the asset of the CGT of £8,000.
Finally, if he was to die the next day would the disposal still be considered as part of his estate and my inheritance?

Thank you for your time

pawncob
Posts:4831
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT - family selling listed shares to family at discounted rate.

Postby pawncob » Thu Nov 18, 2021 1:50 pm

Shares will be transferred at market value for CGT purposes , so CGT is due on the gain from £1000 to £10,000.
Assuming no other gains, no tax liability.
Will not form part of estate after transfer
With a pinch of salt take what I say, but don't exceed your RDA


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