tax payable on transfer of shares

Discussion in 'Accounting & Tax' started by Fernfurn, 14th Mar, 2020.

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  1. Fernfurn

    Fernfurn Well-Known Member

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    Realise this is not a share forum, but perhaps someone can help me before Monday share opening. If I buy shares on my account (and pay for them) can I later transfer them to someone else's name without encruing any tax implications?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    CGT? Stamp duty?
     
  3. Mike A

    Mike A Accountant Business Member

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    no
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    It depends if the value of the shares change.
     
  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    If share shares are valued (margket value) lower that actual cost when transferred there would be no tax cost but the seller may have a CGT loss and the buyer has a lower costbase that the seller had. The sellers total CGT position for the year may imapct this and even be a benefit. eg seller sold a parcel of shares for a large profit a few months ago. The current CGT loss will reuce this.

    If the difference between cost and sale price is a profit YES tax would likely result if the taxpayer has other sources of income. The gain may or may not be discounted and would then be taxed at the taxpayer marginal tax rate. The market value substitution rule likely affects this plan and despite any agreement on price the market value should be used for tax purposes.