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bigduckontax
bigduckontax, Accountant
Category: Tax
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If I transfer shares to my husband is the cgt worked out from

Customer Question

If I transfer shares to my husband is the cgt worked out from the date of transfer or the date I originally obtained them?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
There is, of course, no CGT due on this transaction as inter spousal transfers are outside the scope of UK taxation. Your husband will have been deemed to have acquired the holding at the original price at which you acquired them. When he subsequently disposes of the shares CGT may arise on any gain realised. He has an Annual Exempt Allowance of 11K (14/15 tax year) to offset any gain made.
Here is the view of Mark McLoughlin Associates (Chartered Tax Advisers):
'Inter-spouse transfers normally fall outside the scope of both CGT and inheritance tax (IHT). The basic CGT provision is that a disposal for CGT purposes still occurs under an inter-spouse transfer, but rather than being made at market value, it takes place at a ‘no gain/no loss’ value (assuming that the spouses are living together). The transfer is not actually an exempt transfer – it is just that the transferee spouse acquires the interest in the property at the original cost to the transferor spouse at the date of transfer.'
I do hope I have been able to solve your conundrum.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.