Capital Gains tax on sale of shares

[55palfers]

I have some shares in a US company, acquired via SAYE when I worked for the company.

I've held them since 2007.

I wish to sell.

If I transfer half of them to my wife, I suppose she is still assessed for CGT at the price in 2007 not the price when transferred.

The US broker needs umpteen forms "notarized" which will involve a solicitor and cost a few hundred I imagine.

Need to be sure of my sums.

Many thanks

[WhiskyDisco]

Have you considered transferring them into a S&S ISA? Obviously this doesn't transfer ownership to your wife, but you could sort that out afterwards.

[The Leaper]

I and my wife have been in a similar situation.

• I had acquired some shares in my USA employer in the mid '90s. In addition, I also participated in the employer's separate ESPP.

• For CGT reasons, it made sense for me to transfer the ownership of the earlier acquired shares to my wife.

• There is no tax penalty here in the UK and USA when making a transfer between spouses

• In due course, via the share administrator, Equiniti USA, I completed all their required documentation, and the shares were transferred to my wife.

• Note that a critical part of the documentation is obtaining, at Equiniti's insistence, what is called a Medallion Guarantee. This is a document whereby the party completing it gives a cast iron guarantee, and if there's something wrong that party is liable. It was difficult to find a party that in the UK that would give the MG; in due course I used a solicitor some 30 miles away. They charged over £500 for the MG.

• Subsequently, each year my wife sold a tranche of the transferred share, keeping the capital gain below the then allowance for CGT in the UK.

• In these circumstances, the capital gain and CGT are calculated by reference to the date you acquired the shares, not the date that they transferred to your wife.

R.

[55palfers]

Thanks for the insight Leaper.

My US broker wants the MG as well.

Looking at overall picture I may as well just pay the CGT.

Not complaining though, the shares have done very well indeed over the years.

[The Leaper]

55palfers said:

Thanks for the insight Leaper.

My US broker wants the MG as well.

Looking at overall picture I may as well just pay the CGT.

Not complaining though, the shares have done very well indeed over the years.

Now that the CGT allowance has been slashed, it does seem less worthwhile going through the trouble of transferring shares to a spouse.

R.