My wife and I own a property company. Can the shares be put in a trust for family members?  

Arthur Weller replies 

Yes – you can transfer privately owned company shares into a UK trust. However, it is treated as a gift for both capital gains tax (CGT) and inheritance tax (IHT) purposes. Putting shares into a relevant property trust is an immediately chargeable lifetime transfer for IHT purposes. Above the £325,000 nil-rate band (per individual), 20% lifetime IHT is payable now, and the trust is liable for 10-yearly and exit charges later. With regard to CGT, perhaps a holdover election (under TCGA 1992, s 260) will enable you to hold over the capital gain when the shares go into the trust.