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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5411
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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Can my son gift shares to me and his wife?

Customer Question

can my son gift shares to me and his wife?
Submitted: 3 years ago.
Category: Tax
Expert: replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Gifting of shares
Your son can gift shares to you and his wife. There are implications as follows:

- any shares transferred to his wife would be tax neutral, i.e they are regarded as being transferred at cost and therefore the transfer does not give rise to any gain or loss at the time of transfer.

- transfer to you would be deemed to be at market value and would give rise to capital gains tax if any on transfer. Secondly, the gifted amount would be regarded as a potentially exempt transfer for inheritance tax purposes as far as your son is concerned. The seven year rule would apply to this gift meaning if he survives for 7 years after gifting the shares to you, then the value of shares gifted would be exempt from IHT.

More information on PETs (potentially exempt transfers) can be found here

I hope this is helpful and answers your question.

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