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CGT on sale of shares gifted to daughter- On who's ITR

CGT on gift of shares

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Ive got a new client who has made a substantial capital gain on the sale of shares in the region of £800,000 in 2015/16.

Prior to the sales of the shares the client had 3 months previously transfered by gift a proportion to her 21 year old daughter (clearly with the intention of saving CGT). The daughters share of the gain then being approx £70,000. The value of the gift would have been about the same as the value of the eventual sale. Its therefore my understanding that the whole of the gain is taxable on the mother ? (with the partial disposal to the daughter, arising in 2015 tax year (March 2015), and then the remaining disposal when the actual "true" sale crystalised in June 2015.

I would appreciate any readers agreement or comments otherwise on this, and also reasurance as to the paperwork; Im thinking no SA return needed for the daughter as she had no actual gain and a ammended 2015 return and 2016 SA return for the mother?

Many thanks

Replies (3)

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By Accountant A
03rd Oct 2016 00:14

It may be more complicated (I think) so more details would be required.

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By johngroganjga
03rd Oct 2016 04:38

Have you considered whether holdover relief is available?

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Replying to johngroganjga:
By jennytcrowley
07th Oct 2016 17:21

Thanks John, no its not as the shares are in a company that hasn't traded in 20 years. The gain is on liquidation and has arisen because the company held some land.

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