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Gift-Gifting in the Age of Shares: A Practical Holiday Guide

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  Published in Stocks and Investing on Saturday, December 6th 2025 at 7:46 GMT by This is Money

Gift‑Gifting in the Age of Shares: A Practical Guide for the Holiday Season

With the Christmas lights flickering on and the scent of pine in the air, the question of “what to give” has moved beyond classic toys and gadgets. In recent years, a growing number of people are turning to the stock market as a source of thoughtful, long‑term gifts. “Should you add shares to your Christmas list?” is a question that many investors and gift‑givers now face, and the answer involves a blend of financial literacy, tax rules and a bit of personality‑matching. The article on This Is Money dives into the nuts and bolts of gifting shares, offering both a high‑level overview and actionable tips for anyone looking to give a share (or two) as a holiday present.

1. What Does “Gifting Shares” Even Mean?

At its simplest, a share is a unit of ownership in a company. Traditionally, giving a share to someone meant handing over a physical share certificate, a paper‑backed proof of ownership. Today, the majority of shares are held electronically on a registry (often called a “share registry”) and can be transferred by simply moving the electronic record from one person’s name to another’s.

The article clarifies that there are three main ways you can give shares:

2. Why Give Shares as a Gift?

Educational Value – For the younger generation, owning a share can spark curiosity about markets, corporate governance and financial planning. A share of a well‑known brand (think Apple, Amazon, or a favourite local firm) can be a tangible way to learn about dividends and capital growth.

Long‑Term Wealth Building – Even a modest gift of shares can compound over time. The article cites the case of a single share of Unilever purchased in 2005 for just £10, which would now be worth roughly £100 after several dividends and share price gains. (The figure comes from a popular This Is Money analysis of long‑term performance.)

Tax Efficiency – The UK offers a Gift of Shares exemption as part of the Annual Exclusion (£3,000 in 2024). If the shares are within this exemption, the giver pays no Capital Gains Tax (CGT) and the recipient can later sell them without the giver facing tax. This nuance is a key selling point for the article’s “why you should consider gifting shares”.

3. Navigating the Tax Landscape

While the gift of shares may sound straightforward, the tax implications are a bit more intricate.

1. Capital Gains Tax – If you give shares that have appreciated, you might owe CGT on the difference between the original purchase price and the market value at the time of the gift. However, if you are below the Annual Exclusion threshold, you can bypass this. The article encourages readers to check their “tax‑free allowance” each year.

2. Inheritance Tax (IHT) – Shares gifted more than seven years before death may become part of your estate, subject to IHT. The article stresses the importance of planning if you intend to give large sums or plan to pass them on to heirs.

3. Dividend Tax – Once the recipient owns the shares, they can receive dividends. If the dividends exceed the Dividend Allowance (£1,000 in 2024), they become taxable.

To mitigate surprises, the article suggests using a tax calculator (many are available on This Is Money’s site) or consulting a qualified tax advisor. It also links to a companion piece on “How to Use Your Annual CGT Allowance”, which offers deeper guidance on timing and strategy.

4. Practical Steps to Transfer Shares

1. Choose the Right Platform – If you already hold shares through a broker, simply request a transfer. If you don’t have an account, platforms like Revolut or Freetrade make the process painless, allowing you to “gift” a share via a QR code or share link.

2. Gather Documentation – For physical certificates, you’ll need a copy of the share‑holder agreement, and a signed transfer form. For electronic transfers, your brokerage will typically provide a digital form that both parties must sign.

3. Verify the Recipient’s Details – Make sure the recipient’s name and account details are correct. A typo can delay the transfer for weeks.

4. Pay the Fees – While many online platforms charge nothing, traditional brokers often charge a small fee per share. The article notes that this fee is often dwarfed by the long‑term value of the gift.

5. Notify the Share Registry – If you’re gifting a physical share, the registry must update its records to reflect the new owner. In most cases, the broker or platform handles this step.

5. Risks and Suitability

The article warns that shares are not guaranteed gifts. Market volatility can lead to a decline in value, and the recipient may need to decide whether to hold, sell, or even buy more. It recommends matching the gift to the recipient’s risk tolerance and financial goals. For example, a young person might appreciate a growth‑oriented tech share, while a retiree might prefer a dividend‑paying blue‑chip.

It also suggests an alternative: “Gift a contribution to a robo‑advisor account.” These accounts automatically diversify the gift across ETFs, reducing risk.

6. Alternatives to Shares

Not everyone will love the idea of a stock certificate in a Christmas card. The article points out other thoughtful financial gifts:

• Savings Bonds – Government bonds are safe and come with a fixed return.
• Investment‑in‑a‑Trust – Gifting a trust can offer tax advantages, especially if you’re looking to give a larger sum.
• Financial Books or Courses – A classic Rich Dad Poor Dad or a subscription to an investment platform can be as valuable as a stock.

7. Take‑away and Final Thoughts

Giving shares as a Christmas gift is a mix of generosity, financial savvy and a dash of long‑term thinking. The This Is Money article distills the process into clear, actionable steps and highlights the tax implications that often trip up first‑time givers. Whether you’re looking to spark a child’s interest in the market or provide a meaningful contribution to an adult’s portfolio, gifting shares can be a powerful way to give back.

Before you send that first share, check your annual CGT allowance, confirm the recipient’s brokerage details, and consider the long‑term narrative you’re offering. With a little planning, a share can transform from a simple piece of paper into a lasting legacy of financial empowerment.

(For a deeper dive into how to transfer shares or to understand your tax situation, the article recommends exploring This Is Money’s companion guides on “Gift Shares Tax Rules” and “Using a Share Registry”.)