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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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i wish to transfer some hsbc bank shares to my adult son. what

Customer Question

i wish to transfer some hsbc bank shares to my adult son. what would the problems be re tax etc please
Submitted: 4 years ago.
Category: Tax
Expert:  TaxRobin replied 4 years ago.
Hello and thank you for using Just Answer,
If you transfer an asset, such as shares, to another person for nothing, that is a gift.
You will be treated as though you had disposed of the asset for its market value.
Making a gift to a child - or to other people or companies - is a ‘disposal’ for Capital Gains Tax purposes. You'll need to work out if Capital Gains Tax is due.

Some gifts of shares may qualify for Gift Hold-Over Relief - a relief that allows you to postpone the gain and the receiver of the shares would pay the tax when they sale.
These must be shares in a trading company, or the holding company of a trading group. If these shares are not a business asset they would not be allowed the hold over relief unfortunately.