ISA’s
Dec 26th 2022, 8:38 am
#1
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Joined: Dec 2022
Posts: 2
ISA’s
I would like to transfer ISA’s that I have in the UK to my family. I have no interest in the funds from them and they have been included in the tax returns in the US.
my question is, if I transfer it to them, do I need to pay any taxes on them in the US for the transfer. I’m not selling them, comply transferring the name on them from mine to my parents. Thank you!
my question is, if I transfer it to them, do I need to pay any taxes on them in the US for the transfer. I’m not selling them, comply transferring the name on them from mine to my parents. Thank you!
Dec 26th 2022, 9:01 am
#2
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Joined: Nov 2012
Posts: 902
Re: ISA’s
From a UK perspective, there is no tax unless you die within 7 years of the gift. From a US perspective, you'd file a gift tax return if the gifts exceed $16,000 per donee. Because the UK does not permit gifts in specie from an ISA, you'd be selling any investments within the ISA and reporting any gain or loss or PFIC gain.
Dec 26th 2022, 9:30 am
#3
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Joined: Dec 2022
Posts: 2
Re: ISA’s
From a UK perspective, there is no tax unless you die within 7 years of the gift. From a US perspective, you'd file a gift tax return if the gifts exceed $16,000 per donee. Because the UK does not permit gifts in specie from an ISA, you'd be selling any investments within the ISA and reporting any gain or loss or PFIC gain.
Dec 26th 2022, 2:47 pm
#4
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Posts: 4,128
Re: ISA’s
I think you would have to cash out the ISA because it is a personal tax advantaged account.
https://www.ii.co.uk/ii-accounts/isa...another-person
https://www.ii.co.uk/ii-accounts/isa...another-person
You cannot transfer an ISA to another person. This is because the tax benefits of ISA accounts are for individuals and cannot be transferred or shared.
If you want to move money from an ISA to another person, you will need to sell the investments, withdraw the money and then give that money to the other person.
If you want to move money from an ISA to another person, you will need to sell the investments, withdraw the money and then give that money to the other person.
