Age Restriction for Share Ownership

R

RugbyBoy

Registered User
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146
Hi,

Is it legal for a 14 year old to hold shares? Can I buy shares for my son?
Are there any tax implications?

TIA
RB
 
I don't think that there are any age restrictions on holding capital assets?

I'm not sure if/how you buy the shares in his name. If you buy them in your own and then transfer them then stamp duty at half the normal rate will apply on transferring them to him.

Normal tax rules will presumably apply (dividends assessable for income tax but likely to be under the exemption threshold so any witholding tax can be reclaimed, CGT as normal on any gains etc.)? Any gifted shares or money to buy the shares will count towards eating into his parent to child gift tax exemption allowance.
 
i work for a broker and we do not allow anyone under 18 to hold shares - however, other brokers may allow this practise, but not as far as i know.

the way it normally works in a nominee account is that the name of the account is:

Parents Name A/c Childs Name

The child cannot give any instructions or have any dealings on the account. however, once the child turns 18, the parent is automatically removed from the account.

You just open a normal sharedealing account and then you need to provide a copy of your son's passport/birth cert.

Not a tax expert so not sure on that aspect.
 
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