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HMRC internal manual

Venture Capital Schemes Manual

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HM Revenue & Customs
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Share Loss Relief: individual and corporate claimants: individual claimants: more complex cases: transfers of shares before disposal

The simple case of continuous ownership of shares by the subscriber may be complicated by a transfer of those shares by the subscriber to his or her spouse or civil partner. This event is a disposal for TCGA purposes, albeit that no gain and no loss is deemed to accrue to the original owner (see CG22200+). Without a special rule, therefore, the actual subscriber could not claim Share Loss Relief in respect of his or her shares and nor could the spouse or civil partner (because she or he was not the subscriber). This problem is addressed by ITA07/S135. Providing the transfer took place during their lives and the transferee was the transferor’s spouse or civil partner at the time of the transfer, the transferee is treated as having subscribed for the shares.