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Posted Mon, 01 Apr 2024 10:18:24 GMT by iceman444555666
Hi, a while back I bought shares in a company. It was a highly sought after company so I bought shares up to the maximum amount in my name and then I agreed with a family member that they would also buy the shares. They also wanted to buy shares but didnt have liquidity so I gave them the full amount to my family member to buy the maximum amount of shares upfront. Half of the amount was a loan for my family member to buy the shares (which was repaid a few months later), half was for the family member to buy shares on my behalf. So now of the shares my family member bought, all are in his name on the share certificate but 50% are theirs and 50% are mine. The shares are eligible for investors relief. This all happened in circa 2016. My question is, I may sell the 50% of shares soon so I want to make sure that my family member will not have exposure to capital gains tax as the 50% of shares have always been mine. The capital gains exposure on my 50% is my problem and I will put on my self assessment. Can anyone confirm this? Thank you
Posted Fri, 05 Apr 2024 06:31:40 GMT by HMRC Admin 25 Response
Hi iceman444555666,
As the shares are not in your name, it is your family member that would be liable for any capital gains that would be due.
You would need to submit a declaration of trust signed by both parties to show that you have always been the beneficial owner of 50% of the shares prior to any sale taking place.
Thank you. 

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