Legal tax avoidance
Discussion
Hoping for a bit of free tax advice... :)
Let's say bypothetically speaking (you never know who is watching) that I've got some shares in the company I work for, which periodically pay fairly sizeable dividends. These result in a tax burden which I'd sooner avoid. Can I transfer these to a family member (such as mum or sister) as a gift, and they can avoid capital gains tax?
What I'm thinking is that as they pay a lower rate of tax than me it saves some money. They can then gift the dividend back to me, and providing it doesn't exceed the threshold (£7700 i believe) I'm not liable for CGT on this either? All legal and above board.
They do say a little knowledge is a dangerous thing, and I think in this case it's probably true...
Let's say bypothetically speaking (you never know who is watching) that I've got some shares in the company I work for, which periodically pay fairly sizeable dividends. These result in a tax burden which I'd sooner avoid. Can I transfer these to a family member (such as mum or sister) as a gift, and they can avoid capital gains tax?
What I'm thinking is that as they pay a lower rate of tax than me it saves some money. They can then gift the dividend back to me, and providing it doesn't exceed the threshold (£7700 i believe) I'm not liable for CGT on this either? All legal and above board.
They do say a little knowledge is a dangerous thing, and I think in this case it's probably true...
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