Reader Question: Can I gift my employee shares to my wife to avoid tax?

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Get an answer to your financial question online Reader Question:

I read the article on bed and spousing with interest. I have employee shares gathered over a very long period 13 years in fact. Can I mitigate any gains by gifting shares to my wife and selling then within her CGT allowance?

My response:

Yes you can gift shares to your wife, capital gains tax (CGT) free, for her to subsequently sell them and utilise any unused CGT allowance she may have for the current tax year – so mitigating tax.

Obviously I do not know the full details of your share holding but it is worth pointing out that you may want to check whether you can claim Entrepreneurs Relief, before you transfer any shares to your wife, whereby you would only incur a 10% CGT charge on your own capital gain up to a certain limit. More information on Entrepreneurs Relief can be found here on the HMRC website.

So seek the advice of a tax accountant before you doing anything.

I hope that helps.

Damien

Money to the Masses

Website: www.moneytothemasses.com

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About Damien

When the rest of the City go home at night I switch on my laptop & sit up half the night writing MoneytotheMasses.com.Why? For two reasons.Firstly, because I hate the way the masses are being left to fend for themselves because they can't afford financial advice.Secondly, because no one else will.So I'm trying to rectify this by educating, informing and helping as many people as possible for FREE.

Thoughts on "Reader Question: Can I gift my employee shares to my wife to avoid tax?"

  1. reader61 November 23, 2012 at 2:09 pm

    Thank you Damien, I shall mitigate all my liability by transferring to my wife within her cgt limits and selling over a period of years. Enterpreneur relief does not apply i think as its a corporate publiv company not my own although i guess anyone with shares is a part owner?