Give shares to kids

[N-UPS]

Can I give a few % of my company shares to my young kids (14 and 11)?

They'd put it in savings accounts to help with university costs (hopefully) or a house when the time comes.

I think you can give shares basically free to your Wife / Partner.
Then they get dividends.
I'm a higher rate tax payer.

 

[ChrisCallaghan]

Can I give a few % of my company shares to my young kids (14 and 11)?

They'd put it in savings accounts to help with university costs (hopefully) or a house when the time comes.

I think you can give shares basically free to your Wife / Partner.
Then they get dividends.
I'm a higher rate tax payer.

I'm sure an accountant will be along to give a more detail answered shortly, however there is no age restriction in the UK about being a shareholder, though you will need to check your company's articles. You will also need to take tax advice first, both for yourself and your children.

Below is a link from ACCA you may find helpful whilst you are waiting for others to respond:

Can a child own shares in a private company?

A look at the key considerations of giving shares to minors

www.accaglobal.com

 

[N-UPS]

Thank you for the link

From "Where ITTOIA/S629 applies, the income (over £100 per annum) paid or made available to a minor child or step child will be taxable in the hands of parents and not treated as the child’s income for tax purposes. A step child includes the child of a civil partner. This means that any income to a child on the allotted shares in a family owned company, directly or indirectly, is deemed to be that of the parents for tax purposes."

I think there is no tax benefit from the Children having shares. I could just as well pay myself then fund their saving accounts.

 

[ChrisCallaghan]

I also expect you will need to consider any tax implications for yourself, specifically a Capital Gains Tax consideration for disposing of shares,

 

[UK Contractor Accountant]

I think there is no tax benefit from the Children having shares. I could just as well pay myself then fund their saving accounts.

Gift to Discretionary Trust with children as beneficiaries & grandparent (s) as Trustees