We have a small share portfolio held in personal names that I would prefer to have in our trust where our margin lender will provide margin value against the portfolio. What's the most effective way to get the assets into the trust ? Is it possible to avoid CGT ? It's an ordinary discretionary trust.
I went through a similar thing this year. The advice I received was that we had to sell the stocks in our personal names, triggering CGT, and then repurchase them in the trust. Annoying and costly, but it was the only way I was told I could do it. There doesn't seem to be a way just to transfer the stocks across so you'll be up for brokerage fees as well.
Unfortunately, Sim CGT will rear its ugly head. Can be minimised with some clever tax planning, eg prepaying interest on margin loan + properties etc at year end NIckM
Hi Sim, Further to Nick's advice, you may want to keep the shares where they are, and take the margin loan out in the trust's name using yourselves as guarantors. If you don't need the dividends from your shares, have them paid out, and use them to add to your investment within the trust. You will need to pay tax on these dividends anyway.
Stamp Duty too! Hi All, I did something similar too this year and had to pay stamp duty. Did anyone else? As well as capital gains, of course. Jane
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