Postby Matthew P » Tue Dec 17, 2024 9:41 pm
Hmmm... I will have to figure out what that phrase 'connected party transaction' covers. Let's see if it is involved here....
I started a business.
When I sold it two years ago I made a loss, given the cost of staff, its rather feeble income, etc. It never really became profitable.
So there was a capital loss, which I claimed in my Tax Self-Assessment Form.
Now I want to sell some Unit Trusts that my wife owns. Their value has risen about 100% since purchase.
(1) I get her to transfer the units to me. No CGT is payable, as we are husband and wife.
(2) I then sell the units. CGT would obviously be payable.
(3) I cover the CGT by the capital loss made on the earlier sale of the business. So in fact no CGT is payable.
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That seems to work, though there are costs involved, as the issuer of the unit trusts will probably charge me to take my wife's name off the units and put my name on them. If there was a way around that, it would be nice.