Gifting Shares in Your Limited Company to Your Spouse or Children: The Tax Rules

Normally not. If you live together at some point in the tax year, a transfer between spouses or civil partners is treated as no gain, no loss under TCGA 1992 section 58 (HMRC manual CG22200). Your spouse takes over your original cost (HS281).

Usually, if it is an outright gift. ITTOIA 2005 section 626 keeps the settlements rules away from gifts between spouses where the gift carries the right to the whole income and the property is not wholly or substantially a right to income. Ordinary shares with full voting, dividend and capital rights pass that test. Dividend-only shares or conditional gifts put it at risk. Our dividend waiver guide covers a related trap.

A child is a connected person, so the gift is a disposal at market value and can create a gain with no cash received. For 2026/27, gains above the £3,000 annual exempt amount are taxed at 18% or 24% (GOV.UK).

Gift hold-over relief can defer the gain if the shares are unlisted or in your personal company, and the company's main activities are trading rather than investment. You and your child must claim jointly, using helpsheet HS295. The child then takes over your base cost.

Under ITTOIA 2005 section 629, income from a parent's gift to their unmarried child under 18 is taxed as the parent's income unless it is £100 or less in the tax year. HMRC's TSEM4300 gives the example of parents gifting company shares to children aged 12 and 15: the dividends are treated as the parents' income.

There is no Stamp Duty where you are given shares for nothing. For Inheritance Tax, gifts between spouses or civil partners are exempt, while gifts to children may be taxed if you die within 7 years (GOV.UK). Business relief can also matter; see inheritance tax on limited company shares.

• a signed stock transfer form;
• board approval and new share certificates;
• an updated register of members, and the PSC register if control changes; and
• the change shown on the next confirmation statement.

Our share transfer filing costs £149 + VAT and covers the stock transfer form, board minute, new certificates and updated registers. Tax advice on the gift itself is not included: book a paid consultation, or book a free intro call to talk through our services first.