Capital Gain Tax on joint account UK
- Thread starter cesfx
- Start date
You can use IB friends and family account and link 15 accounts so everybody has their own tax allowance and reporting. How do you report gains from a joint account? Split profit in half and report it twice?
ask www.accountantsfortraders.co.uk
ask www.accountantsfortraders.co.uk
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No flexibility in splitting profits between eg spouses with a joint account has to be 50%. So a problem if you pay different CGT rates.
GAT
If it is 50% and both have the same CGT rate and allowance available, is it better than having all in one name?
It would make no difference. But you can also transfer between spouses with no CGT crystallization: not possible with a joint account.
Also you can apportion dividends differently if the rates there are different. Just gives you more flexibility generally.
GAT
Thank you. It looks like I am going to keep the individual account.
Do you mean you could transfer some of the profit to spouse, to make use of both of the allowances?
Is what you are referring to only for spouse, or could it be for a brother or sister?
Thanks again
It's only for spouses, and it's not profit transfer, but share transfer.
As an example, when I was working 100% of my investments were in my spouses name (apart from locked in share and fund grants and options), as she was not working at the time and so had much lower marginal tax rates. Then when I stopped it made sense to put some of those shares in my name (to fund my trading account). So we transferrred from her name to mine. This didn't incur any CGT, but when I subsequently sold those shares I had to use the original purchase price from when she bought the shares in the calculation.
GAT
Blimey!