Editorial team AccountingWEB.co.uk
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Any Answers Answered: CGT change and children buying shares

TaxTV hosts Giles Mooney and Tim Good tackle next year's CGT changes and children buying family company shares in this month's Any Answers Answered video.

15th Nov 2019
Editorial team AccountingWEB.co.uk
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Replies (7)

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By mail.taxperfect.co.uk
18th Nov 2019 11:59

Very helpful. Can I ask a question about the change to the PRR rule? Does the date of occupation of the property (being after the date of transfer) also need to be before 6 April 2020? Or is that irrelevant, the most important point being to make the transfer before 6 April 2020?

Thanks.

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Tim Good profile image
By Tim Good
18th Nov 2019 18:06

The draft Finance Bill 2019-20 clause applies the change to spousal transfers (rather than property disposals) made on or after 6 April 2020. So the answers to your three questions are yes, no and yes.

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Replying to Tim Good:
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By mail.taxperfect.co.uk
18th Nov 2019 17:58

Tim Good wrote:

The draft Finance Bill 2019-20 clause applies the change to spousal transfers (rather than property disposals) made before 6 April 2020. So the answers to your three questions are yes, no and yes.

Thanks for your reply, Tim. My reading of draft FB Clause 1 subsection 13 is that the inter-spouse transfer needs to be done after 5 April 2020 in order for the new rules to apply. I had read into that that so long as the transfer was effected before 6 April 2020 then the moving in date and ultimate sale date are irrelevant. In fact, looking at point 14 of the explanatory notes to the draft Bill, this states that "The existing rules continue to apply where the transfer between spouses or civil partners occurred prior to 6 April 2020, even where the disposal by the recipient spouse or civil partner is made after that date". Am I reading this completely wrong? Thanks for clarifying.

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Replying to mail.taxperfect.co.uk:
Tim Good profile image
By Tim Good
18th Nov 2019 18:06

Lol! I meant "after". But I got the Yes, No, Yes right!

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Replying to Tim Good:
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By mail.taxperfect.co.uk
19th Nov 2019 09:16

Hi Tim, thanks (again), and just to clarify...occupation is required BEFORE 6 April 2020 (not just the inter-spouse transfer) for this to work? Sorry to be a pain, but obviously it's a crucial point I would like to clarify. Thanks.

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Replying to mail.taxperfect.co.uk:
Tim Good profile image
By Tim Good
19th Nov 2019 14:26

Maybe I was trying to be too clever with my Yes, No, Yes response. More fully:
"Can I ask a question about the change to the PRR rule? Yes
Does the date of occupation of the property (being after the date of transfer) also need to be before 6 April 2020? No
Or is that irrelevant, the most important point being to make the transfer before 6 April 2020? Yes
So to clarify:
No - occupation of the property is not required before 6 April 2020; and
Yes - the most important thing is to make the transfer before 6 April 2020.

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Replying to Tim Good:
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By mail.taxperfect.co.uk
19th Nov 2019 20:52

Ah, thanks very much again. I hadn't appreciated the order of the yes, no, yes, but now I fully understand. Thanks very much for clarifying.

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