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Transfer of loan asset effective for loss relief?


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I'm trying to see if a worthless loan qualifies for relief under TCGA 1992, s 253. The background is that the worthless asset is owned by the husband. It would be benefical if the loan could be transferred to the wife as she has gains against which the loss could be used. My question is: will this work?

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By Wilson Philips
18th Nov 2019 13:30

My vote is for no, based on the opening wording of 253(3)

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By The Dullard
18th Nov 2019 13:48

I haven't looked at the legislation, but I'm also inclined towards no. Transferring (some or all of) the gain producing assets to the husband probably would have worked. Shame there's not a s 171A equivalent for spouses.

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Red Leader
By Red Leader
18th Nov 2019 14:08

I guess the problem is that this is outside the normal rules for "CGT" assets transferred between spouses.

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Replying to Red Leader:
By Tax Dragon
18th Nov 2019 14:17

They've tried to help (see s24(1C))… but I agree with Wilson, they'd need to change s253 too.

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