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

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.


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About Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.In 2014, after publishing his first book '30 Day Money Plan - Fix your finances in just 5 minutes a day' Damien quit his day job to focus his efforts on MoneytotheMasses.comIn 2015 he launched '80-20 Investor' which empowers DIY investors to invest & run their own money.

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?