I have a Company director who has a terminal illness and wants to transfer his shares to his wife.
HMRC guide GC22010 says that transfers take place for such consideration as will give rise to neither gain nor loss for the transferror.
There is a commercial building on the balance sheet as well as cash deposits.
My question is - what is the value of the shares for the transfer - the nominal value (£1 each) or a value based on the strength of the balance sheet?
Replies (3)
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Neither
It is the price that the husband paid or the March 1982 value if the shares were aquired before then. Obviously the husband may have paid the nominal value of £1 each but then again he may not.
IHT on death
Why does he want to transfer them now?
If the widow waited until he died to acquire the shares, she would get a CGT uplift to MV at his death.