Selling inherited shares - are there ways to avoid 33% DIRT tax?

E

earthangel

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Hi,

As a divorce settlement, my ex has transferred his shares in Kerry Group to me. I now need to cash some to clear my debts.

As I have inherited these this week and will be selling them at the same price (as i got them) will i be likely to pay CGT? My ex got them gifted to him when they were a very low value about 25 years ago.
 
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Confused, certainly.

The title is very misleading - there is no such thing as 33% DIRT and there seems confusion over CAT and CGT as well.

I am not sure how a divorce settlement works but I imagine either your husband or you will be liable for CGT.

Transfers between husband and wife do not attract CAT but the acquisition cost would be the original value so if you sell them you will liable for CGT at 33% on the gain.

Or, he is disposing of them, so liable for the CGT and you are acquiring them at todays value so no gain if you sell them now.
 
CGT will have to be paid by someone on these shares at some stage and its by you or him
 
On the basis that the transfer I'd imagine qualified as an intraspouse transfer for CGT and CAT you acquired them at his base cost so you would be on the hook for the CGT.
 
Joe_90 said:
On the basis that the transfer I'd imagine qualified as an intraspouse transfer for CGT and CAT you acquired them at his base cost so you would be on the hook for the CGT.
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Is not the transfer /disposal date its current value today
 
No, transfers between spouses do not count as a disposal for CGT purposes but the original cost is transferred too, not the market value at the date of transfer. Otherwise, married couples could transfer stuff back and forth and avoid CGT altogether.

However, a transfer in a divorce settlement may not class a transfer between spouses, in which case the original owner is disposing of an asset at market value and is liable for CGT, whilst the receiver obtains it at market value.
 
best need to clarify the terms of the divorce as to who was to pay the CGT. 25 years means there is a substantial gain in the share so the would be a capital gain tax to be paid.
 
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