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Withdrawal of shares from ISA - tax effects?

I give shares direct from ISA to son. Is latent gain to date of gift tax free? Son's base cost?

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I have been told that I can give shares directly from my stocks & shares ISA to my son (saves substantial brokerage costs).  HMRC guidance at para10.19 in this document:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...  confirms that the transfer of an investment to the ISA investor is possible and that the broker has to provide market values for the shares to the investor.  By implication the gain while the shares were held in ISA is tax free and (should a direct gift from ISA to my son not be possible, provided I give the shares to my son on the same day they come out of the ISA) my son's base cost is the value on the day of exit from the ISA. 

I don't like relying on 'By implication'.  Can anyone point me in the direction of legislation or other guidance from HMRC that confirms the above.  I have tried searching without success.

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By the_drookit_dug
23rd Jan 2018 10:50

.

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By ms998
23rd Jan 2018 12:51

https://www.legislation.gov.uk/uksi/1998/1870/regulation/22/made

This is the support that gains made are tax free.

Is that what you are after?

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Replying to ms998:
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By TaxAngel
23rd Jan 2018 13:16

Not quite, but the link was really helpful because it led me on to S34 in the regs which quite clearly sets out that there is a deemed disposal and reacquisition at market value in these circumstances and everything flows from that. The gain accrued in the ISA is tax free and if the gift is made on the same day as the transfer from the ISA, son acquires shares at their market value on that day.
Thank you so much, I'm really grateful to you.

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