Just got a few minutes spare and noticed this AGAIN on stockbrokers quoted shares CGT Report.
In the good old days we used to advise (husbands usually back then) to gift shares to wife and then get wife to sell on after a year to use her annual CGT exemption.
This strategy was borne out by comments in (I think) the old Tolleys CGT books (and/or maybe Simons). There definitely was a quote in one of the textbooks about the donee sitting on the gifted shares FOR A WHOLE YEAR before (she, back then) sold them on.
Now we used to wonder where this "one year" holding period came from. Certainly not in the statute. But we got the message: "Do not sell the gifted shares immediately after the gift".
Lest what? Good question! Maybe lest Inland Revenue (back then) decided to say the wife's sale was in fact deemed to be the husband's and added her gain back on top of his?
Well, that never happened. In the umpteen decades of practice I have only ever seen one single occasion when the Inland Revenue queried a stockbroker sale (and it was not for a gift situation).
So, (and I have seen it many times over the last few years) I have a few minutes ago seen a case where (wealthy) wife transferred on stockbroker's advice a quoted shareholding to husband on 19 April 2017 followed by an immediate sale by husband on the same day.
So what is the big worry? Could HMRC now say that the husband's sale was actually the wife's. And why did the old textbooks say wait a whole year after gift before selling on.
Was it author paranoia or was/is there a genuine threat of some HMRC sanction. Certainly in MTD more transactions like this will be picked up.