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How to gift US shares to wife (both live in UK)

How can I gift US shares to my wife? Both of us live in UK.Shares are in my individual IBKR account

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Hi,

How can I gift US shares to my wife? Both of us live in UK. Shares are in my individual Interactive Brokers account.

I have been searching the web and also read another post that mentions this is posible, however, where can I find specific details as to how to actually go about making this gift so that I have all the paperwork required by HMRC.

For example, would I need to instruct my broker to set up a joint account or a separate individual account in my wife's name, and phyically transfer the shares into my wife's account?

Or is there a more simpler way, by way of some form of letter?

Any advice would be welcome!

 

Replies (4)

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By johngroganjga
06th Apr 2021 08:28

What does your broker say you need to do to transfer shares? As they are specialists in handling share transactions aren’t they the people to ask?

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Replying to johngroganjga:
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By ivans
08th Apr 2021 21:40

The broker suggested that I speak to a tax advisor. In the meantime, I have called the HMRC and he mentioned using Form 17. But after a bit of research, form 17 would only work if we have the shares in a joint account and we wanted to split beneficial ownership to ratio other than 50:50.

In my case, all the shares are in my individual brokerage account so if I understood correctly, I do not need to transfer share to my wife’s account nor a joint account, as I could make her the beneficial owner of a portion of the shares by executing a Declaration of Trust, where I, the nominee shareholder, would continue to hold all shares in my individual account, but the agreed portion of shares would be held for the benefit of my wife (beneficial owner).

If above is correct and after the Declaration of Trust is put into effect, if I would sell the shares for which my wife is the beneficial owner, but do this via my individual brokerage account, should the capital gain/loss be reported via my wife’s tax return as she is the beneficial owner?

Final two questions - as I understood the Declaration of Trust does not need to be sent to HMRC with the tax return? And can this be signed by myself and wife only or would we need to use third party/lawyer?

Thanks (0)
avatar
By ivans
08th Apr 2021 21:50

The broker suggested that I speak to a tax advisor. In the meantime, I have called the HMRC and he mentioned using Form 17. But after a bit of research, form 17 would only work if we have the shares in a joint account and we wanted to split beneficial ownership to ratio other than 50:50.

In my case, all the shares are in my individual brokerage account so if I understood correctly, I do not need to transfer share to my wife’s account nor a joint account, as I could make her the beneficial owner of a portion of the shares by executing a Declaration of Trust, where I, the nominee shareholder, would continue to hold all shares in my individual account, but the agreed portion of shares would be held for the benefit of my wife (beneficial owner)?

If above is correct and after the Declaration of Trust is put into effect, if I would sell the shares for which my wife is the beneficial owner, but do this via my individual brokerage account, should the capital gain/loss be reported via my wife’s tax return as she is the beneficial owner?

Final two questions - as I understood the Declaration of Trust does not need to be sent to HMRC with the tax return? And can this be signed by myself and wife only or would we need to use third party/lawyer?

Thanks (0)
avatar
By ivans
08th Apr 2021 21:51

The broker suggested that I speak to a tax advisor. In the meantime, I have called the HMRC and he mentioned using Form 17. But after a bit of research, form 17 would only work if we have the shares in a joint account and we wanted to split beneficial ownership to ratio other than 50:50.

In my case, all the shares are in my individual brokerage account so if I understood correctly, I do not need to transfer share to my wife’s account nor a joint account, as I could make her the beneficial owner of a portion of the shares by executing a Declaration of Trust, where I, the nominee shareholder, would continue to hold all shares in my individual account, but the agreed portion of shares would be held for the benefit of my wife (beneficial owner)?

If above is correct and after the Declaration of Trust is put into effect, if I would sell the shares for which my wife is the beneficial owner, but do this via my individual brokerage account, should the capital gain/loss be reported via my wife’s tax return as she is the beneficial owner?

Final two questions - as I understood the Declaration of Trust does not need to be sent to HMRC with the tax return? And can this be signed by myself and wife only or would we need to use third party/lawyer?

Thanks (0)
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