FHL and spousal transfers
Victoria and David owned a FHL property for many years, and continue to let it on this basis. The property stands at a gain and they have a chance to sell it, but for tax planning reasons they want to transfer the property in to one spouse's name prior to the sale. Assuming the sale takes place within three years of the business activity ceasing, does ER apply in full on the sale by the single spouse?
s.169I TCGA1992 contains the legislation surrounding this, and subsection (2)(a) and/or (b) appears to qualify the transfer from one spouse to the other in that the initial transfer is covered by the usual inter-spouse rules, and at the point of the sale, the remaining spouse still is disposing of their "interest" - the level or size of their interest doesn't need to be quantified for the legislation to be applied.
However the real question appears to be whether they can be both treated as having owned the business up to the sale of the property - s.169I(3) and (4) both state that it is a material disposal if "the business is owned by the individual" for the relevant time periods.
So, does the legislation take on a literal meaning - has the business been owned by the spouse selling the property for one year leading up to cessation of activity and within three years of this date, or did they only own 50% of the property for this amount of time, with the other 50% transferred from their spouse being own for only a matter of months?
Does anyone have any thoughts on this one? The names have been changed (David is probably more upset not to be in the Olympics) and this isn't an exam question!
- Small employers paying people when sick thanks alot! 3,022 33
- vat return 245 3
- Flat rate vat 79 1
- Payroo Employer allowance query 167 5
- Value pricing 715 26
- RTI Annual Scheme Query 147 4
- PAYE coding notice - deliberate misstatement 177 4
- Private residence relief with entrepreneur relief mix 284 4
- Reregister for VAT 131 2
- Producing graphical KPI's etc 197 6
- Weely paid employees 243 3
- Would this save hours of your time? 476 11
- Director's tax return 281 6
- Keep receiving RTI late submission notice 216 6
- Wrong career 479 18
- MONEYSOFT - EARLIER YEAR UPDATE 288 7
- Laptop purchase 1,393 20
- PTP software disaster 281 2
- CIS repayment shambles finally over? 234 2
- Treatment of EU Purchases on Sage 103 2
- Residential Property Purchase Above £750K 798
- Using Sage with Sofa Categories 550
- Does anyone have an unwanted ICAEW wooden plaque? 416
- Goods shipped inter EU and VAT Reporting 294
- Free Tax Legislation? 266
- Director Loan account operation 245
- transferring simply accounting 2010 from xp to windows 7 240
- Non-Resident Director - UK Tax Position? 238
- Sage 200 and Access Dimensions reviews 230
- Paye procedures for CVA 159