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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15608
Experience:  International tax
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Hello, I am hoping that you can help me. My father passed away

Resolved Question:

Hello, I am hoping that you can help me. My father passed away just over a year ago and has left me roughly £90k worth of shares which he took out in my name. I am now thinking of cashing in the shares as they seem to be quickly losing their value and I am not sure if it is possible to declare them as inheritance, as they are already in my name. If I sell them off and add £90k to my bank account I presume it will raise questions. I am about to do my tax return hence the need for advice! Many Thanks.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
You are correct. The fact that your father purchased the shares for you and they were in your name place them outside the inheritance of property.
Your gain will be calculated by looking at the difference in the cost and the sell price of the shares.
Had your father purchased then later gifted the shares to you, the market value on the day received them would come into play.
As it stands now, unfortunately you will need to report the sell and pay any CGT on the profit unfortunately.
Customer: replied 3 years ago.
Thank you.
So if the sale price of the shares is less than the purchase price, would there be anything to pay? Also, in the shares that have gone up in value, what is the percentage of CGT payable? I didn't know that the shares existed until he was dying. Not sure if that makes any difference.
Thanks.
Expert:  TaxRobin replied 3 years ago.
Hello,
If the sale price is less than purchase then there would be no tax to pay. The Annual Exempt Amount for individuals for 2013-14 is £10,900. Gains over this amount would be subject then to CGT based on your income level.
For gains made in 2013-14 Capital Gains Tax is charged at 18%, or 28% for higher rate tax payers.
I wish I could tell you that the shares would be inheritance but that would not be the case.
Customer: replied 3 years ago.
That is helpful. Thanks!
Expert:  TaxRobin replied 3 years ago.
You are most welcome.
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