When gifting stock to a relative, there is no tax impact for the donor or the relative receiving the shares. … If the gift exceeds that amount, they would have to file an estate and gift tax return, but again, there would be no tax implications unless the gift exceeded their lifetime gift and estate tax exemption.
Are there Reliefs and Exemptions for Stamp Duty?
- shares in a company that is not incorporated in the UK and doesn’t maintain a UK based share register.
- stock quoted on a market outside the UK.
- gilts or corporate bonds.
- shares issued in a flotation, or new shares issued in a rights issue.
There’s no stamp duty on transactions between spouses and no tax to pay. When your spouse receives them, it is assumed to be at the equivalent price that you paid for them – there is no revaluation.
Is there stamp duty on a gift?
You’re given property as a gift
If you get property as a gift you will not pay SDLT as long as there’s no outstanding mortgage on it. But if you take over some or all of an existing mortgage, you’ll pay SDLT if the value of the mortgage is over the SDLT threshold.
Transferring shares to someone as a gift
The good news is that there is no Capital Gains Tax on gifts of assets (including shares) you give to your spouse or civil partner.
A gift of shares from you or your wife to your son is also a deemed disposal of shares for capital gains tax purposes. As the gift is being made to a connected party, it is a deemed disposal at market value. … It does this by effectively transferring the capital gain to the recipient of the gift.
Paperless transfers of stocks, shares and other securities are exempt from SDRT (there is no tax to pay) if they are: shares that you receive as a gift and that you don’t pay anything for (either money or some other consideration) shares that someone leaves you in their will.
It is possible to avoid paying stamp duty on shares in certain circumstances, such as shares donated as a gift, shares in foreign companies which are not kept on a register in the UK, and shares in a unit trust.
Stamp duty chargeable by reference to consideration
The rate of duty is normally 0.5% of the consideration (or, in certain circumstances where either of the stamp duty market value rules applies, the deemed consideration) for the transfer of the stock or marketable security.
HMRC exempts you from capital gains tax when you gift shares to your spouse. Looking at the example above, if you gift 5000 shares to your spouse at the new price, you will not be taxed. However, if your spouse decides to sell them, he or she will be subject to capital gains tax.
In most cases, you don’t have to pay any Stamp Duty or tax when you inherit property, shares or the money in joint bank accounts you owned with the deceased.