Transfer of shares to spouse

by **mazdaq100** on Sun Jan 01, 2012 11:22 pm

Hi

I purchased some shares in a company in August 2010 and September 2010 and I transferred a proportion of these to my wife in February 2011 in order to use her 2010/11 CGT annual allowance. I understand the shares are transferred on a no gain/no loss basis. However, in March 2011, within the next 30 days of the transfer, I then purchased some more shares in the same company so I am now wondering what my wife's base cost would be?

Will it be the average cost of the shares bought in August and September 2010, or will it now be based on the cost of the shares I purchased in March 2011?

Thanks in advance for any clarification.

mazdaq100

by **mazdaq100** on Thu Jan 05, 2012 1:12 pm

I guess what I'm asking is do the share matching rules apply when shares are transferred to spouse on a no gain/no loss basis?

by **maths** on Thu Jan 05, 2012 4:40 pm

The normal matching rules apply but the no gain/no loss rule also applies.

by **mazdaq100** on Thu Jan 05, 2012 6:18 pm

Thanks. So just to make sure I have this totally correct - is the following example correct?

I transfer 1,000 shares to my wife but within 30 days of this transfer, I buy a further 1,000 shares. The base cost for my wife will then be the cost of the 1,000 shares that I bought within the 30 days after the transfer.

Is that correct?