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Where Taxpayers and Advisers Meet

CGT on EIS shares and spouse transfer

santiago102
Posts:3
Joined:Tue Oct 31, 2017 2:41 pm
CGT on EIS shares and spouse transfer

Postby santiago102 » Tue Oct 31, 2017 3:00 pm

I have shares in a company issued under the EIS scheme that means that their sale is free of CGT. I also bought shares in the same company outside the EIS arrangment and sale of these are subject to CGT tax in the usual way. The proportion of these 'outside' shares is 27%. When calculating the potential tax, I have worked out the gain over original cost, then taken 27% of this as being the taxable amount, and subtracted my annual CGT allowance. The resulting figure is what I need to declare for CGT. This has been accepted before when I sold some of these shares and it seemed OK then.

Now that CGT is levied at different rates for basic and higher-rate tax payers, there is an advantage to me in transferring some shares to my wife (I pay higher-rate, she basic-rate). I understand that the EIS shares can be transferred without losing their CGT-exempt status so can be simply transferred to my wife. What I would like to do is to transfer the 'outside' shares alone to her so that I can sell the EIS shares at one time without any CGT being payable, leaving her with all the 'outside' shares which can be sold year by year against her CGT allowance and lower tax rate. Am I permitted to divide up my shares in this way or do I have to transfer the shares in the same (27% 'outside') proportion? Many thanks for any advice.

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