CGT on shares

[interestedparty]

I will be selling some shares soon at a profit figure above the CGT allowance. Can I gift 50% of the proceeds to my girlfriend, who I live with. We are not married, nor have we undergone a civil partnership? If I can, then how should this be evidenced? Also, they are unlisted shares so would the transfer value be the issue price?

[northernladuk]

Are they held personally or via your LTD?

[interestedparty]

They are held in my name, i.e., in my personal capacity.

[interestedparty]

To restate my question:

I will be selling some shares soon at a profit figure above the CGT allowance - the sales are held in my name in my personal capacity.

Can I gift 50% of the shares to my girlfriend, who I live with so that we can split the gain and utklise both of our CGT allowances? We are not married, nor have we undergone a civil partnership? If I can, then how should this be evidenced? Also, they are unlisted shares so would the transfer value be the issue price?

[jamesbrown]

To restate my question:

I will be selling some shares soon at a profit figure above the CGT allowance - the sales are held in my name in my personal capacity.

Can I gift 50% of the shares to my girlfriend, who I live with so that we can split the gain and utklise both of our CGT allowances? We are not married, nor have we undergone a civil partnership? If I can, then how should this be evidenced? Also, they are unlisted shares so would the transfer value be the issue price?

Pretty sure you cannot because shares can only be gifted free of CGT between spouses and civil partners, in order to then leverage the allowance of the other partner. Perhaps restate your question to an actual professional, though. You cannot really expect general tax advice from an IT forum (and rely on it).

[northernladuk]

To restate my question:

I will be selling some shares soon at a profit figure above the CGT allowance - the sales are held in my name in my personal capacity.

Can I gift 50% of the shares to my girlfriend, who I live with so that we can split the gain and utklise both of our CGT allowances? We are not married, nor have we undergone a civil partnership? If I can, then how should this be evidenced? Also, they are unlisted shares so would the transfer value be the issue price?

Many tax breaks work only for Spouse or civil partner for fairly obvious reasons. You are a confirmed couple so splitting is fair enough. Girlfriend means nothing in most legislation/laws. Could be any random person and splitting with a random person often leads in to evasion/GAAR territory so my complete guess would be no you can't.

Here is an example on CGT that specifically mentions Spouse/Civil as an example.
https://www.sjp.co.uk/individuals/ne...our-other-half

But as already said, better asking a professional rather than a bunch on contractors on the finer points of tax law.

[eek]

But as already said, better asking a professional rather than a bunch on contractors on the finer points of tax law.

It’s a straight forward unless you are married you can’t do that.

you don’t need to ask a professional to tell you something is impossible. There is a risk they will try to find a convoluted way to do it so they can make money from you

[Craig@Clarity]

To restate my question:

I will be selling some shares soon at a profit figure above the CGT allowance - the sales are held in my name in my personal capacity.

Can I gift 50% of the shares to my girlfriend, who I live with so that we can split the gain and utklise both of our CGT allowances? We are not married, nor have we undergone a civil partnership? If I can, then how should this be evidenced? Also, they are unlisted shares so would the transfer value be the issue price?

Yeah, there's no tax avoidance here I'm afraid. Gifting shares to your girlfriend would still create a chargeable gain which you would be subject to CGT on. If you gifted them to her, you'd still have to work out the gain by taking the market value when you 'disposed' of them to her.

[interestedparty]

Thanks, I’ll get some advice.

[NotAllThere]

Thanks, I’ll get some advice.

Hopefully advice from people who won't...

...try to find a convoluted way to do it so they can make money from you...

...and leaving you facing trial for tax evasion.