selling shares in another's name - CGT implications

[thejolly]

Hi,
I bought shares some years ago in a company (ABC) for myself and on behalf of a few friends. All of the shares are in my name. Unfortunately the company has regressed and the shares are now only worth a fraction of the original investment. As a group, we have given up on ABC and are happy to sell the lot.
One of my pals has had some success with other shares. He wants to sell the other shares. He is keen to offset some of his gains with the his share of losses in company ABC. Is there any way that we can do this with the share cert for ABC in my name?

TIA.

 

[mandelbrot]

Is there a money trail at the time, of funds flowing from them to you for their share of the acquisition?

The cynic in me looking at it in the absence of any other facts, would see an opportunity for 2 people to engineer a situation where the one with a capital loss and no gain to use it against, and the one with a capital gain that they'd like to reduce, will both benefit (with a few quid of the tax saved passing under the table). The kind of tax avoidance scheme one might dream up in the pub of a weekend...!

 

[Luternau]

I doubt you are being cynical- this seems to be a question about tax avoidance...or dare I say possible tax evasion...or am I being a cynic?

 

[MrEarl]

....this seems to be a question about tax avoidance-of which asking about or discussing is prohibited on AAM.

Thats certainly how it looks to me also.....

 

[mandelbrot]

I don't see where discussion of tax avoidance is prohibited on AAM?

Anyway tax avoidance isn't illegal; tax evasion would be a different kettle of fish.

 

[Luternau]

You are correct. It's not-Doh. I think this is skirting the boundary of avoid/evade-the latter, not permitted!

 

[Brendan Burgess]

It wouldn't be that unusual for an informal investment club to buy the shares in one person's name. If the OP can show that at the time of the purchase he received the money from the other members of the investment club, then it would be legit and I presume that the Revenue wouldn't have a problem with it.

mandlebrot. On the tax return, there is a section where you note your purchases of assets during the tax year. Does the Revenue use this information for any purpose?
I presume that if the friend in this case noted the acquisition of shares on his tax return at the time, then he will have little problem claiming the losses now.