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    • Home • Advice • Common questions

    Can I transfer shares to my children without incurring tax?

    17 September 2024

    Question by Jai

    If I were to transfer shares to my spouse, would she then be able to transfer them to my son so that the calculation of IHT would be from the time of her death - as she is considerably younger than me - rather than mine?

    Answered by Adrian Kidd

    So, from an Inheritance Tax (IHT) perspective, this makes sense. As there are no Capital Gains Tax (CGT) and IHT liable between spouses, the shares can pass without any tax between you both.

    The problem arises here though, when your spouse will transfer the shares to your son. This DOES have CGT implications, as your spouse will own the shares at the price at which you own them. If the transfer of value to your son is more than the original cost to you, CGT will potentially need to be paid on the increase in value.

    Remember that there is an annual allowance of just £3,000 before gains are taxed!

    Answered by

    Adrian Kidd

    Life Planner and EQ Coach

    I am a family man first and foremost. Everything revolves around my wife and daughter. After them, comes helping people via financial coaching or creating their own individual life plans.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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