Selling Kerry Group shares

J

johnno93

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Hi
My father has kerry group shares

He wants to either sell them and gift his children the money or transfer the shares to his children and we sell them ourselves.

What is the best way to go about this to avoid a big tax bill

He has the shares since the early 90's

Thanks
 
1) Dying is the best form of CGT planning. All capital gains disappear on death.

2) If he gifts them now, he will pay CGT on the increase in value since he bought them. The calculations will be done on today's value not the price he transfers them at.

3) How much are the shares worth and how many children are there? What other assets will he be leaving them? Will they have a CAT liability?
 
Hi Brendan,

There is 7500 shares, he was left them from his father

He has 5 children

There is also a farm

So basically no matter what he does he will have to pay cgt at 33% on the shares
 
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So 7,500 shares at €88 = €660k/5 = €132k each - well below the CAT threshold.

If the child who inherits the farm is a farmer, I think that they will pay CAT based on 10% of the value.

The amounts are large, so he should speak to an accountant or tax planner to work things out.

Brendan
 
Brendan Burgess said:
So 7,500 shares at €88 = €660k/5 = €132k each - well below the CAT threshold.

If the child who inherits the farm is a farmer, I think that they will pay CAT based on 10% of the value.

The amounts are large, so he should speak to an accountant or tax planner to work things out.

Brendan
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I'd be surprised if Kerry Group shares could be shoehorned in as agricultural assets (assuming that's what you're referring to).
 
Could he sell every year, just enough to be below the yearly threshold of free CGT allowance of 1,270 and distribute those tax free to the children now bit by bit by way of small gift exemption?
 
If the farmer in the family is also a Kerry milk supplier, he will need to have a minimum of old co-op shares proportional to his annual supply. That shareholding would I think be seen as farm assets even if those co-op shares may be later converted to plc shares.

In the scenario outlined I think that retaining them in the father's name (as advised by BB) is what's usually advised. The benefit of the shares, e.g. for securing home build/buy loans can be enjoyed while they are still in senior's name, assuming he approves the project!

It's clear that such situations have been occurring in Kerry for some time and no doubt accountants (solicitors too but I advise against consulting them as they have in the past offered to buy co-op shares in trust for their own benefit) in Kerry would know the routine well. But naturally you need to find one you know you can trust firstly.
 
The transfer of the shares within lifetime as a gift would also attract stamp duty, which would be another needless cost attracted. No stamp duty for transfer upon death.
 
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