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Posted Wed, 26 Jan 2022 10:33:44 GMT by ELEL
As per the HMRC webpage: https://www.gov.uk/capital-gains-tax/gifts If my spouse sells the asset that was given by me as a gift, my spouse needs to pay tax on any gain. The HMRC webpage also says that “Their gain will be calculated on the difference in value between when you first owned the asset and when they disposed of it.” How can I calculate the value “when I first owned the asset” if the asset is stock/shares? Should the normal stock/shares disposal method (i.e. firstly shares acquired on the same day, then shares acquired in the following 30 days and then the shares in the S104 holding) be used (i.e. as if I sold the shares on the day I gave them to my spouse)? If not, can you please point me to the related documentation? Thank you.
Posted Thu, 27 Jan 2022 11:16:06 GMT by HMRC Admin 2
Hi,

Yes, you would use the guidance outlined on this helpsheet to work out the value.

Your wife's acquisition price will be the same as yours.

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Thank you.
Posted Thu, 27 Jan 2022 12:27:47 GMT by ELEL
Thanks a lot for the reply. I understand how to calculate the cost of shares disposal. What I am not sure is in fact whether my wife’s acquisition price will be affected by my buy/sell activities after I have given the shares to her. Your reply “Your wife's acquisition price will be the same as yours” doesn’t mention the timing. My acquisition price depends on my buy/sell activities and the date I sell my shares. Can you please confirm whether my wife’s acquisition price (based on the standard shares disposal calculation, including the same day and 30 days rules) be LOCKED on the day of ownership transferred and would not be affected by the later change of my acquisition price of my own holding? I believe it should be LOCKED. If not, the calculation would then be very complicated. However, I am not sure. Your conformation will be very much appreciated. Thank you.
Posted Fri, 28 Jan 2022 13:27:50 GMT by HMRC Admin 20
Hi ELEL,

When your wife comes to sell the shares, she will be treated as having your allowable costs (treated as giving rise to neither a gain nor a loss to the person transferring them).
If you have a number of shares of the same class in the same company and you dispose of some of them to your wife, the share identification rules tell you which shares you are held to have disposed of.
When your wife come to dispose of some of them, the dates that matter for the share identification rules are the dates that your wife acquired them, not the time when  you did.

HS281 Capital Gains Tax civil partners and spouses (2021)

Thank you.

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