You could gift the shares to your wife In this situation you do not have to pay any capital gains tax. This is because a gift to your spouse does not constitute a transfer as defined in the Income Tax Act and hence no capital gains tax is chargeable to the transaction.
Can I gift my company shares to my wife?
If you’re officially married, you can give shares in your company to your wife or husband and they won’t have to pay any capital gains tax, even if your business is worth serious money. If your business is making a good profit and is worth real money, then HMRC will see you giving something of value to another person.
Why do I need to transfer shares to my spouse?
For example, if you are planning to sell a shareholding and the capital gain is likely to exceed your annual exemption resulting in a capital gains tax charge, why not transfer some of those shares to your spouse in order to utilise their annual exemption as well?
What does it mean to transfer assets between spouses?
In this article “spouse” means husband, wife or civil partner. Transfers of assets between spouses generally bear no capital gains tax consequences. When the ownership of assets is shared between the couple, so are any potential capital gains in respect of any future disposals of these assets.
What happens when you transfer capital gains to your spouse?
That said, it doesn’t mean you’ve successfully transferred the capital gain over to your spouse to realize in the future instead of you. A transfer of capital assets leads to attribution between spouses, such that any subsequent income – whether dividends, interest, capital gains, or other income – are taxable back to you.
Can you transfer a mutual fund to your spouse?
The same attribution of deferred capital gains applies even if you loan the money, so if you have deferred capital gains on a mutual fund you wish to use to fund the spousal loan, you may wish to sell it first and transfer the cash proceeds, or alternatively elect on your tax return, Dean, to have the transfer take place at fair market value.
