Giving shares to my son

[Nimrod103]

I can't find an obvious board on which to ask this question.
I have about £25000 of shares in a large British multinational, currently outside an ISA.
Other things being equal, I would have bed and ISA'd this, but I have decided I might as well give them to my son.
Is this a simple transaction, like an inheritance? Just inform the company to change the name on the share certificates?
Or is is more complicated?

[monabri]

https://www.fool.co.uk/personal-finance ... to-family/

[scrumpyjack]

I can't find an obvious board on which to ask this question.
I have about £25000 of shares in a large British multinational, currently outside an ISA.
Other things being equal, I would have bed and ISA'd this, but I have decided I might as well give them to my son.
Is this a simple transaction, like an inheritance? Just inform the company to change the name on the share certificates?
Or is is more complicated?

You send a share transfer form, with the share certificate, to the registrar for the particular company.

If your son is a minor the shares will need to be registered in the name of an adult (eg you) and designated with his initials. You will hold them on his behalf as a 'bare trustee'. There is no stamp duty on a gift, but there may be CGT as it is a disposal.

[Dod101]

You have the answers, but not the emotion. Good for you. More of us should do this sort of thing if we can afford it (and of course if we judge the recipient to be a decent donee!)

Dod

[Nimrod103]

You have the answers, but not the emotion. Good for you. More of us should do this sort of thing if we can afford it (and of course if we judge the recipient to be a decent donee!)

Dod

Thanks for all your comments and help.
I am doing it because a) I can afford it, b) he needs it, he and his wife will never be high earners and he has a young child to raise, and c) the Govt's imposition of a higher tax rate on dividends outside of ISA's means that dividends in my hands will be quite highly taxed. My son might as well have more of his inheritance early. It will be taxed at a lower rate.
I realise there are issues about me losing the assets and it being split if there was a future divorce etc etc, but I have always taken the view that it is family money, not really just mine.

[Lootman]

You have the answers, but not the emotion. Good for you. More of us should do this sort of thing if we can afford it (and of course if we judge the recipient to be a decent donee!)

Thanks for all your comments and help.

I am doing it because a) I can afford it, b) he needs it, he and his wife will never be high earners and he has a young child to raise, and c) the Govt's imposition of a higher tax rate on dividends outside of ISA's means that dividends in my hands will be quite highly taxed. My son might as well have more of his inheritance early. It will be taxed at a lower rate.
I realise there are issues about me losing the assets and it being split if there was a future divorce etc etc, but I have always taken the view that it is family money, not really just mine.

Have you looked into the capital gains tax treatment of doing this?

It will be treated as a disposal for you, at current market value (other than transfers to a spouse).

[Nimrod103]

You have the answers, but not the emotion. Good for you. More of us should do this sort of thing if we can afford it (and of course if we judge the recipient to be a decent donee!)

Thanks for all your comments and help.

I am doing it because a) I can afford it, b) he needs it, he and his wife will never be high earners and he has a young child to raise, and c) the Govt's imposition of a higher tax rate on dividends outside of ISA's means that dividends in my hands will be quite highly taxed. My son might as well have more of his inheritance early. It will be taxed at a lower rate.
I realise there are issues about me losing the assets and it being split if there was a future divorce etc etc, but I have always taken the view that it is family money, not really just mine.

Have you looked into the capital gains tax treatment of doing this?

It will be treated as a disposal for you, at current market value (other than transfers to a spouse).

Yes. In this particular case the shares are in BP and I inherited them from my father at about the same price as they are today.
I always have hopes that oil shares will go up, but often they don't.

[Dod101]

Oh well. Are you sure it is a good idea to give these shares to him? Might be better to sell them and give him the cash.

Dod