This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

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:5090
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


Return to “Capital Gains Tax, CGT”