Gifting ABRDN Shares

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Patrickf

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Hi,
I'm aware that my wife and I can gift up to 6,000 euros (total) annually to each of our children or other persons without tax implications. However my question is can we donate shares up to the value of 6,000 euros annually without attracting CGT implications. Would I have to inform Revenue of our intentions? The ABRDN shares are trading at about 135 p sterling at the moment. Your advice here would be much appreciated.
Regards,
Patrickf
 
You would have disposed of an asset worth whatever you're giving away and could be exposed to a CGT liability.
 
Thanks Rob Oyle for your prompt reply to our query. We're not very well up on disposal of Shares. We were given shares when Standard Life (now ABRDN) demutualised many years ago and just invested the dividends in their drip system over the years and now have accumulated a reasonable block of shares. Can you clarify this for us: - We are allowed to give up to 6,000 euros to anyone including our children annually without tax implications. If we give shares to our 3 children up to the value of 6,000 euros, say this year, then we are liable for CGT on the value of the shares at the time of giving. Again thank you for your assistance in this matter.
Regards,
Patrickf
 
CGT and CAT are two separate taxes.

There may be CGT due on the disposal, obviously depending on whether you made a gain or not.


There would not be any CAT liability for the recipient.

The 3,000 per annum small gift exemption is an exemption from CAT:

Small Gift Exemption

Exemption from CAT on small gifts
www.revenue.ie www.revenue.ie
 
Thanks Protocol for your reply. Our intention was to give each of our children (3) one in Australia, one in UK and one in Rep. Ireland shares up to a total value of 3000 euros. We've been reinvesting the dividends for many years so I'm not sure how I would establish whether there was an overall loss or gain. The shares (ABRDN) have fallen in value over the past several years and are now valued at 1.35 pounds sterling. Any advise on this. Under Revenue can we gift up to 6,000 euros (my wife and I) to each of our children each year and must we inform Revenue of our transaction. Apologies I'm not too well up on financial matters. Thank you again for your reply.
 
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Patrickf said:
Thanks Protocol for your reply. Our intention was to give each of our children (3) one in Australia, one in UK and one in Rep. Ireland shares up to a total value of 3000 euros. We've been reinvesting the dividends for many years so I'm not sure how I would establish whether there was an overall loss or gain. The shares (ABRDN) have fallen in value over the past several years and are now valued at 1.35 pounds sterling. Any advise on this. Under Revenue can we gift up to 6,000 euros (my wife and I) to each of our children each year and must we inform Revenue of our transaction. Apologies I'm not too well up on financial matters. Thank you again for your reply.
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It might be just cleaner for you to sell the shares and gives the proceeds to your kids depending on the value. Roughly what value are we talking here ? .
 
Patrickf said:
Thanks Protocol for your reply. Our intention was to give each of our children (3) one in Australia, one in UK and one in Rep. Ireland shares up to a total value of 3000 euros. We've been reinvesting the dividends for many years so I'm not sure how I would establish whether there was an overall loss or gain. The shares (ABRDN) have fallen in value over the past several years and are now valued at 1.35 pounds sterling. Any advise on this. Under Revenue can we gift up to 6,000 euros (my wife and I) to each of our children each year and must we inform Revenue of our transaction. Apologies I'm not too well up on financial matters. Thank you again for your reply.
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The CAT Small Gift Exemption applies to the recipient, not you.

I do not think that the recipient in Ireland must tell the Revenue about the 3,000 Small Gift received.

You do not need to worry about CAT, as CAT is paid by the recipient.



You need to consider CGT on the disposal.

I see that ABRDN share price has fallen from 5.00 GBP back in 2017 to 1.33 GBP now.
 
By the way, you can give as much cash to anybody without ant tax implications for you.

It's the recipient who might be liable for CAT.
 
Thanks Protocol for your advice (I see you are 'burning the midnight oil). I really do appreciate your interest in my queries
 
Mapara said:
It might be just cleaner for you to sell the shares and gives the proceeds to your kids depending on the value. Roughly what value are we talking here ? .
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Thanks Mapara I'm thinking along these lines as well. However due to the serious decline in ABRDN shares at present, I might hold on for some time.
 
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