If one were to transfer shares in a listed company from person (a) to person (b) without selling them is the only tax implication the STT (securities transfer tax) of 0. 25% of the value? Does person (a) have any other tax implications? and when person (b) sells the shares what would the base cost be? (the same as person a's cost or 0 as person (b) did not pay for the shares)
The transfer is in effect a sale of shares. If there is no value then this is both a donation and a capital gain event for which the seller will need to pay tax on. When person b eventually sells the shares the base cost would be the market value he received them at.
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