CGT - Using spouses CGT allowance.

[jryan]

Hi,

Later this month, I will be allocated shares through a company Success Sharing Plan. These shares will be liable to Capital Gains Tax.

In order to minimize the CGT liability, what is the best approach to use my wife's 1,270euro CGT allowance?

Options:-
1) Create a brokerage a/c in wife's name and transfer a portion of the shares
into this a/c. All documentation will be in order. Drawback - There will be quite alot of form filling etc...

2) Sell shares through nomination company broker. Transfer the proceeds of sale to wife's bank a/c. Augment sale with a "note" to confirm shares were transferred to wife - sign by both parties?

Any comments welcome?

 

[DB74]

How much is the brokerage etc going to cost you in set-up costs & fees etc?

Sounds like you're jumping through a lot of hoops to save €400

 

[jryan]

I agree. If it was a once off, it probably makes to take the €400 hit. However, I will be receiving shares every six months with the possibility of further CGT liability.

 

[Setanta12]

You will be receiving, or you will both be jointly receiving ?

Edit, if your spouse is receiving these shares from you and you are both selling these off at regular intervals ... These transactions look like transactions for the sole purpose of avoiding taxation. Is there any other commercial imperative behind the proposed transfer? (cough)(ahem) looks well dodgy to me. You need advice on this where you tell advisor of your intentions otherwise advice might be invalid. Broker, if he was awake, might have a duty to report these suspicious transactions.