How to realise a gain (share CGT question)

[LeoSayer]

Is there a way for my wife to realise a gain on a fund (oeic) without actually redeeming the units?

I want to transfer the shares into an ISA (my wife’s or mine) for the 08/09 tax year (my broker offers a ‘Bed & ISA’ service), but realise the gain in this tax year. I don’t want to redeem the units because the fund is closed to subscriptions.

I wondered if my wife could ‘sell’ the units to me at market value and how I would need to record this. FWIW, I already transferred the holding to my wife in the 06/07 tax year, and she then sold some of the holding..

[Horse_Apple]

Not really had time to think this through but my first thought would be to contact the issuer and establish whether you can actually carry out a title transfer in the first place.

If so, then establish whether transfering title from wife to ISA will crystalise the CGT liability.

[Welshbeef]

LeoSayer said:

Is there a way for my wife to realise a gain on a fund (oeic) without actually redeeming the units?

I want to transfer the shares into an ISA (my wife’s or mine) for the 08/09 tax year (my broker offers a ‘Bed & ISA’ service), but realise the gain in this tax year. I don’t want to redeem the units because the fund is closed to subscriptions.

I wondered if my wife could ‘sell’ the units to me at market value and how I would need to record this. FWIW, I already transferred the holding to my wife in the 06/07 tax year, and she then sold some of the holding..

hmm selling to a partner.... Im not sure but highly doubt it as they need to change neames on the system.

However to realise a gain yu have to sell the units once you have done this its self assessment time and you have to remember your taper & indexation relief.

With shares the old "B&B" was common at the end/start of the tax year however now you have to wait 28day IIRC before you can buy back the same stock.

[Eric Mc]

Don't forget that if you successfully dispose of these shares but wait until after 5 April, Taper Relief and Indexation will not apply.

[LeoSayer]

Horse_Apple said:

Not really had time to think this through but my first thought would be to contact the issuer and establish whether you can actually carry out a title transfer in the first place.

If so, then establish whether transfering title from wife to ISA will crystalise the CGT liability.

I can definitely transfer them, as I've done it before using a stock transfer form sent to the registrar. My previous transfer to my wife was done at zero cost, which is standard behaviour for transfers between spouses. I effectively transferred the unrealised gain to her.

Its really a tax question - I want my wife to transfer the shares back to me, but this time we want to nominate (to the taxman) that the transaction is at market value.