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Capital Gains Tax Planning for the Owner of a Share Portfolio


An individual owned a significant portfolio of stocks and shares, which were built up over a number of years.

He wished to give the portfolio to his descendants, as he had no requirement for the money and wished to plan for Inheritance Tax.

Our Advice

The stocks and shares were worth significantly more than what the individual paid.

We advised that care must be taken because even though he was gifting the shares to other family members a capital gains tax liability could still be inadvertently created.

We prepared draft capital gains tax computation for each of the share and unit trust types and then advised the client on timing the gift so as to avoid capital gains tax.

By utilising capital losses, the individuals’ annual capital gains exemptions and taper relief, we advised of the manner in which the portfolio could be gifted over a period of about two and half years, whilst avoiding capital gains tax.

Outcome / Savings

If the individual had not taken our advice in this matter he could unknowingly have presented himself with a capital gains tax bill of over £10,000.