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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Good morning! I want to give my wife some shares without

Customer Question

Good morning!

I want to give my wife some shares without incurring Capital Gains Tax

I have a number of shares in my former employer which I manage through a company-provided broking account (which is in the U.S as I worked for a european arm of Texas Instruments. My wife and I are resident in the UK.

For CGT reasons I would like to gift half of this U.S stock to my wife by some legal document, one that does not involve selling the stock first. Can you suggest what document would achieve this?

Thanks

Clive Hoggar

I am not subject to cgt in the U.S as a non-resident alien.
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

From what you say you and your wife are both UK domiciled.

Customer:

That is correct

Joshua :

Are you aware whether the shares were issued to you as part of an HMRC approved employee share plan?

Customer:

Yes they were

Joshua :

Thanks.

Joshua :

On that basis providing you and your wife are not separated (which I assume is not the case but I mention for the sake of completeness) then you may transfer shares to your spouse and the shares are treated as having been transferred at their market value at the time of transfer but at no chargeable gain or allowable loss.


he shares are also treated as transferred at their market value at


the time of transfer but you make no chargeable gain or allowable loss.
Joshua :

Apologies the formatting appears to have gone awry. I will repost for clarity:

Joshua :

On that basis providing you and your wife are not separated (which I assume is not the case but I mention for the sake of completeness) then you may transfer shares to your spouse and the shares are treated as having been transferred at their market value at the time of transfer but at no chargeable gain or allowable loss.

Joshua :

This is only the case if the shares were issued as part of an HMRC approved employe share plan

Customer:

Is there a formal document required?

Customer:

I mean what sort..

Joshua :

In order to transfer the shares, you can either contact the share registrar to transfer the shares into your wifes name which transfer will be subject to any rules of the scheme. Alternatively you can execute a simple declaration of bare trust declaring the number of shares you hold on her behalf.

Joshua :

You would remain the legal owner of the share under the bare trust but any income and capital from the same belong to her.

Joshua :

Is there anything above I can clarify for you?

Customer:

That is great - thanks

Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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