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Alan, My client owns shares in Kerry Co-Op Ltd. with a current value of approx. €140K. The shares are held in his sole name. My client wants to put his sons name on the shares, so that they both would then own the shares jointly(50/50). Q: Can you outline the tax implications for both:(1) my client who currently owns the shares & (2) for his son, if he puts his son's name on the Kerry shares?

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Posted by (Questions: 231, Answers: 5)
Asked on 15 January 2016 4:53 pm
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1. The client is subject to CGT (33%) on any gain he has made since acquiring the shares (Current market value less acquisition value). He gets the CGT annual allowance of €1,270.
2. Each son takes a gift worth €70k. To the extent that either son has exceeded has tax-free parent-child threshold (€280k) the gift is subject to CAT at 33%. If within the threshold, no CAT arises.
3. If both CAT and CGT arise it might be possible to offset CGT against CAT provided the conditions of CATCA 2003 s 104 are met.

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Posted by (Questions: 5, Answers: 5113)
Answered on 23 January 2016 12:55 pm