Client has been separated for 2 years and in the throws of divorce through the UK Courts on the basis of living apart for 2 years; I consider they "have been separated under circumstances such that the separation is likely to be permanent", especially given that he is living in the US and she left him and came to live in the UK (she is British, he is American).
She got a transfer to the UK base of her employer; there is a share trading account in her name (because of who she works for) so if she merely transfers the shares in that account to him then I think the gain would be the FMV of each shareholding at the date of transfer less the original cost. There are no employer share scheme awards in this account and they have separated amicably so no Court Order forcing the transfer to her soon-to-be ex. I can't think of anything to alleviate the CGT situation but would be grateful for any thoughts.
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Yes it's a straightforward market value transfer between connected parties, which they remain until the decree absolute. The tax consequences are the same regardless of whether the transfer is made by agreement or under a Court Order.
How are they filing their Income tax returns, FBARs and gift tax returns in the United States? What kind of US visa does the wife have? Are they taking adequate US advice on the issues?