Gifting shares which have made a loss

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dub_nerd

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If you gift shares to a relative it may be possible to offset CAT liability against CGT paid. Covered in another AAM thread previously here.

In my case I want to gift shares to a sibling. The value is around the CAT threshold, so no liability there. But the shares are trading at a substantial loss, so no CGT payable either. After transferring the shares can I declare this loss in the normal way and carry it forward to offset against future capital gains? (I assume so, but just thought I'd check).
 
dub_nerd said:
If you gift shares to a relative it may be possible to offset CAT liability against CGT paid. Covered in another AAM thread previously here.

In my case I want to gift shares to a sibling. The value is around the CAT threshold, so no liability there. But the shares are trading at a substantial loss, so no CGT payable either. After transferring the shares can I declare this loss in the normal way and carry it forward to offset against future capital gains? (I assume so, but just thought I'd check).
Click to expand...

No, you can only offset it against future gains made in respect of transactions between you and the recipient of the shares (i.e. your sibling).

It is a restricted connected party loss.
 
Gordon Gekko said:
No, you can only offset it against future gains made in respect of transactions between you and the recipient of the shares (i.e. your sibling). It is a restricted connected party loss.
Click to expand...

a) I see that now you mention it, and b) glad I found out before I did something stupid.

Thanks a million.
 
Wow! I never knew that.

If they are publicly traded shares, then sell them on the open market and gift the proceeds.

Brendan
 
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