Tranfer of shares..?

Question

i want to transfer some shares i bought in to my brother, what is the procedure? and will he have to pay tax? shares were bought for £4.50 then , but now are worth £1.40.

thanks

Answer 1

You need a 'share transfer form' You can buy them on line - here is a site:- http://www.lawpack.co.uk/stock_transfer_form_pack.asp
The charge is £4.49 (I saw on site selling them for over £15, a rip off)
They are fairly straight forward to fill in. When that has been done, you have sign it. If your brother pays you for the shares, stamp duty will have to be paid, if they are free they are exempt. For more details see:- http://www.hmrc.gov.uk/so/faqs.htm#2
When that formality has been dealt with the transfer and your share certificate is forwarded to the Registrar of the company concerned who will issue your brother with a certificate in his name.

Your brother will have no tax to pay, other than stamp duty as mentioned. You will have no Capital Gains Tax liability as you will make a loss.