Share transfers

[FredBloggs]

Hope this is the right section for this question.

An uncle of mine is tyding up financial matters with the New Year. He has a small number of shares - value not great - and he says he wants rid of them and he couldn't be bothered with the hassle of selling them. He gave the file he has on them to me and said I can keep them. I tried explaining to him its not that simple.
Is there any way I can get a transfer of the shares done into my name if I get a share transfer form? Would the transfer have to be stamped? I would have no problem paying him for the shares - and as I said they're not worth much but by taking them off his hands he would have one less thing to worry about. I have suggested that he give them to his bank to sell but he was having none of it - he just doesn't want any bother with them

 

[Brendan Burgess]

Most shares in Ireland are administered by Computershare or (the other one whose name escapes me?). I think you can transfer from one person to another using a form and paying the stamp duty. Check their website.

Brendan

 

[jpd]

How small a value ? He may incur a CGT liability and you may incur a CAT liability

 

[ClubMan]

Most shares in Ireland are administered by Computershare or (the other one whose name escapes me?).

[broken link removed]?

I think you can transfer from one person to another using a form and paying the stamp duty. Check their website.

There may also be a small registrar/stock market fee. Consanguinity relief applies to capital asset transfers between blood relatives which means that SD is charged at half the normal rate. But I don't think that this applies to uncle/nephew transfers though.

 

[FredBloggs]

Thanks for all your help

How small a value ? He may incur a CGT liability and you may incur a CAT liability

Not sure what the vlue is - haven't calculated that but will over the next few days. As I mentioned I've no problem paying him what they're worth so if I give him a cheque for the value do I avoid the CGT/CAT implications?

 

[ClubMan]

if I give him a cheque for the value do I avoid the CGT/CAT implications?

You avoid any CAT implications but he does not avoid any CGT liabilities. SD remains an issue.

 

[MandaC]

[broken link removed]?
There may also be a small registrar/stock market fee. Consanguinity relief applies to capital asset transfers between blood relatives which means that SD is charged at half the normal rate. But I don't think that this applies to uncle/nephew transfers though.

Consanguinity relief does not apply to the sale or transfer of shares.

Stamp Duty is payable at the rate of 1% of the consideration paid for the shares OR the market value, which ever is HIGHER.

Its not clear from the original post, whether the shares are in quoted or unquoted companies? Most likely not a private company, however, it should be noted if it is a case that the shares are held in a private company an SD4 form will need to be submitted for adjudication rather than stamping (as the parties are related)to the Revenue Commissioners.

 

[ClubMan]

Consanguinity relief does not apply to the sale or transfer of shares

Sorry - I thought that it applied to any capital asset transfer.

 

[FredBloggs]

Thanks for your help.

Shares are mostly in AIB

 

[Allen]

I think AIB have their own share dealing service which may be cheaper than a stockbroker. Whenever they send dividend notices they usually send details of this service. Otherwise their website should explain it. If you get the paperwork for him you will only need him to sign it.

As already mentioned CGT may be an issue so he may want to dispose of them over a few years.

If there is only a small amount of shares, in your position I would not be inclined to take then as filling in income tax returns for the twice yearly dividends, and then eventually CGT returns, is a bit of a nuisence.

I presume his holding is in paper certificates.