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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If a wife transfers 50% of her shareholding in a public company,

Resolved Question:

If a wife transfers 50% of her shareholding in a public company, I understand that basically he inherits her cost of purchase in terms of calculating any profit on sale for CGT purposes. However will they both now be entitled to an AEA doubling the AEA making the total sale more tax efficient
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

So long both of you have capital gain in your own right, you would both be entitled to AEA.
Based on your example you would both have a holding in shares of that company.

I hope this is helpful and answers your question
taxadvisor.uk and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.
so if my wife's holding is showing a profit of £26000, if she transfer 50% of her holding to me! we can both sell immediately with the AEA being double ! I do not have to hold the shares for any period of time ?
Expert:  taxadvisor.uk replied 2 years ago.

Thank you for your reply.

I would not recommend immediate sale after transfer as HMRC may pick it up.
HMRC don't like the idea of transferring shares to spouse and selling them immediately.

The options you have are:
- sell enough shares in this year in your wife's name to maximise you AEA.
- sell the remainder next week to utilise the AEA for next year
- transfer some into your name now and you sell them in the new tax year.

All of the above would give the desired outcome.

I hope this is helpful.

taxadvisor.uk and 2 other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.
Best wishes.