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Help !!! 【Capital Gain Tax and Gift Tax】

  • 21-05-2009 9:51pm
    #1
    whufee
    Closed Accounts Posts: 128 ✭✭


    :confused:

    Hi
    Im thinking of transfering ownership of some Shares from my name to my best mate's name. Approximately 5000 shares and worth 6400 EURO now (I only paid 3400 EURO for 5000 shares), So does anyone know which is the best way to do it and how much tax I and him should pay?

    1. Can I sell those shares to my friend at original price, If so, how and how much taxes I and him should pay?

    OR

    2. Can I 'give' those shares to my friend as a gift, what taxes are related to this transaction? and how much ?


    Thanks very much for any advice, It is urgent, cuz I'm leaving this country for good on 2-6-09!


Comments

  • #2
    Past30Now
    Registered Users, Registered Users 2 Posts: 380 ✭✭Past30Now


    whufee wrote: »
    :confused:

    Hi
    Im thinking of transfering ownership of some Shares from my name to my best mate's name. Approximately 5000 shares and worth 6400 EURO now (I only paid 3400 EURO for 5000 shares), So does anyone know which is the best way to do it and how much tax I and him should pay?

    1. Can I sell those shares to my friend at original price, If so, how and how much taxes I and him should pay?

    OR

    2. Can I 'give' those shares to my friend as a gift, what taxes are related to this transaction? and how much ?


    Thanks very much for any advice, It is urgent, cuz I'm leaving this country for good on 2-6-09!

    You can either sell or gift the shares to your friend.

    If you sell them you will have to sell them at market price. Any gain made would be subject to capital gains tax. From your explanation the gain would be €3K. Assuming no other crystallised gains this year, and no losses forward, your liability would be less than €440.

    Gain €3,000

    Annual Exemption €1270

    Taxable gain €1730

    Tax @ 25% €433



    If you gift the shares, then your friend may have a CAT liability. The group C threshold between strangers in blood is €21,700. Assuming you friend hasn't received gifts previously, then he will have no CAT liability. The CGT liability will still be payable.


    Question - even if you are leaving the country for good, do you have to dispose of the shares?

    Regards,

    Past30


  • #3
    Legend100
    Registered Users, Registered Users 2 Posts: 736 ✭✭✭Legend100


    If he/she gifted the shares to the friend, would there not still be a charge to CGT on the deemed disposal of the shares aswel as the CAT for the friend?


  • #4
    whufee
    Closed Accounts Posts: 128 ✭✭whufee


    Thx, I still a bit confuse, which is the better way to transfer the ownership? Sell or 'gift'?

    Would you mind tell me how much is the difference two options. Again, thank you so much !!!

    The reason i want to transfer some of my shares to my best mate is, he is the guy I met in Ireland who really helps me, I would like to give something back, he has 2 kids and 4 wks ago he lost his job....


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