Capital Gains Tax

[Ham08]

If you transfer shares (which you have held for say 10 years) to a spouse and then they immediately sell them, would they still be entitled to taper relief based on how long you have held them or would they be based on how long your spouse has held them (i.e. no time at all)?
Also for Business Taper Relief if you have held an asset for 2 or more years you receive 75% Taper relief. If you are a base rate tax payer does that mean you would only actually pay at a rate of 5%(assuming the gain does not take you into high rate tax). Thank you

[al_eebee]

1) A transferee spouse takes on transferors taper relief

2) Yes

Obviously only relevant until 5/4/2008 since the pre budget report

[Ham08]

Thank you for that. However, I have been informed by an accountant that a transferee spouse does NOT take on the transferors taper relief!! I am not doubting you but could you confirm that you are correct and even popint me in the direction of where the information could be found? Thank you for taking the trouble to answer my question.

[BonyT99]

You need to be aware that although your wife's qualifying holding period will include any time that you have held them the question of whether they continue to qualify as business assets will be in reference to her after the transfer.

eg You have share that qualify for BATR by way of being an employee of the large company that you own shares in. If those were transferred to your wife and she is not an employee then she will take on the number of years that you have held them BUT they will not qualify as business assets.

Perhaps this situation applies to you and hence why your accountant has told she will not get the same taper relief?