How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17201
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

Hello, I am hoping that you can help me. My father passed away

This answer was rated:

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.
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.
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!
You are most welcome.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
Rating lets Just Answer know you were assisted and credits me for the time.
TaxRobin and other Tax Specialists are ready to help you