Inherited shares - they are paper shares by the way... Advice required pls :)

[WeGottaGetOuttaThisPlace]

I inherited paper shares a few years back and have been worrying about what to do with them if we ever actually emigrate. Our visa's will expire Dec 2013 so we really are going to go next year as time is marching on.

 

Anyway, back to the point. I will likely need to sell a lot of the shares to have some money to get us to Oz, pay for short term rental and set up at first. I would rather not sell them all before getting to Oz but have recently heard that there will be major tax implications of having shares in the UK as I would pay both UK and Oz tax on the dividend/any sales etc and I have no idea how the taxing of share sales work in Oz so maybe I am better selling the lot while we are still here in the UK?

 

Help please. Anyone in the same boat at all?

 

Also, if I get the paper shares transferred to CREST do I then lose the dividends?

 

I am awful at all this.

[Guest girlwizz99]

I inherited paper shares a few years back and have been worrying about what to do with them if we ever actually emigrate. Our visa's will expire Dec 2013 so we really are going to go next year as time is marching on.

 

Anyway, back to the point. I will likely need to sell a lot of the shares to have some money to get us to Oz, pay for short term rental and set up at first. I would rather not sell them all before getting to Oz but have recently heard that there will be major tax implications of having shares in the UK as I would pay both UK and Oz tax on the dividend/any sales etc and I have no idea how the taxing of share sales work in Oz so maybe I am better selling the lot while we are still here in the UK?

 

Help please. Anyone in the same boat at all?

 

Also, if I get the paper shares transferred to CREST do I then lose the dividends?

 

I am awful at all this.

 

You will owe CGT on the profits of sale - if there aren't any you have no problem. Tax wise it depends on what sort of visa you are coming over on. If you are temporary resident in Oz you have a bit of an effective CGT holiday as the Aussie government can only tax you on income generated in Australia and if you are going to stay away from the UK for 5 years (you are allowed in for holidays etc) you are effectively a tax exile for UK purposes too. If you are on a permanent visa I believe you register as non-resident for UK taxes and declare profits to the ATO who will take the CGT and the tax on the dividends. I'm afraid I don't know anything about the CREST side of things.

[WeGottaGetOuttaThisPlace]

Thanks for that. I just find all this so confusing. Since I inherited the shares therefore didn't pay for them originally, how do I work out any profit in selling them? The shares have increased in value since I inherited them... Is this an issue?

 

Anyway, I really don't know what to do.....

 

Thanks again

[Guest girlwizz99]

Thanks for that. I just find all this so confusing. Since I inherited the shares therefore didn't pay for them originally, how do I work out any profit in selling them? The shares have increased in value since I inherited them... Is this an issue?

 

Anyway, I really don't know what to do.....

 

Thanks again

 

Presumably you paid inheritance tax when you originally received the shares? I imagine you will be liable for CGT on the difference from the valuation then to the sale price you achieve less your personal allowance. There is a good Aussie-UK accountant Alan Collett - you can find him at Go Matilda - Your Gateway to Australia - Visa, Tax and Financial Planning for Australia if you want to be 100% certain of your situation.

[Si T]

Although I am an Accountant my focus is on business management and not tax etc. If I remember correctly CGT is payable on profits from disposals over 9k. I would also expect the UK/Aus to have a taxation treaty which could negate the issue of double taxation. As previously mentioned it would be worth you speaking to a a tax specialist before you make any decisions. Alan Collett would be a good idea as he is both an Accountant and Migration Agent so may have some knowledge of this specifically.

 

Good Luck

 

Si

[Les Avalook]

I inherited paper shares a few years back and have been worrying about what to do with them if we ever actually emigrate. Our visa's will expire Dec 2013 so we really are going to go next year as time is marching on.

 

Anyway, back to the point. I will likely need to sell a lot of the shares to have some money to get us to Oz, pay for short term rental and set up at first. I would rather not sell them all before getting to Oz but have recently heard that there will be major tax implications of having shares in the UK as I would pay both UK and Oz tax on the dividend/any sales etc and I have no idea how the taxing of share sales work in Oz so maybe I am better selling the lot while we are still here in the UK?

 

Help please. Anyone in the same boat at all?

 

Also, if I get the paper shares transferred to CREST do I then lose the dividends?

 

I am awful at all this.

 

You have £10,100 allowance to use this year before you will pay tax on any gain.

 

You can gift enough shares to your partner (husband?) and he can then sell those shares again with an £10,100 tax free allowance. Total tax free allowance now £20,200.

 

Sell enough shares to maximise your allowance now and then if you are still here next 06/04/11 then sell the same amount again. Possible tax free total now £40,400 if still in UK.

 

These figures are the taxable profit of the shares not the value.

 

If you wish you can use the money to buy the shares back into a self select ISA. No tax worries while you remain in the UK.

 

That could make quite a difference to any tax bill you could face.:biggrin:

[WeGottaGetOuttaThisPlace]

You have £10,100 allowance to use this year before you will pay tax on any gain.

 

You can gift enough shares to your partner (husband?) and he can then sell those shares again with an £10,100 tax free allowance. Total tax free allowance now £20,200.

 

Sell enough shares to maximise your allowance now and then if you are still here next 06/04/11 then sell the same amount again. Possible tax free total now £40,400 if still in UK.

 

These figures are the taxable profit of the shares not the value.

 

If you wish you can use the money to buy the shares back into a self select ISA. No tax worries while you remain in the UK.

 

That could make quite a difference to any tax bill you could face.:biggrin:

Thank you so much. That is amazing! I will def look into that then

I feel much better now thank you.

[Les Avalook]

Thank you so much. That is amazing! I will def look into that then

I feel much better now thank you.

 

This explains all about it;

 

HM Revenue & Customs: Capital Gains Tax on shares: the basics

 

:wink: