Section 267 — Income Tax Act 2007: Transfers of shares between spouses or civil partners

Transfers of shares between spouses or civil partners 267 1 Section 266 does not apply in the case of any disposal of shares made by an individual to the individual's spouse or civil partner, if it is made at a time when they are living together.

2 Subsection (3) applies if any eligible shares which—

a have been issued to any individual (“ the transferor ”),

and b are shares by reference to which any VCT relief has been obtained, are transferred to the transferor's spouse or civil partner (“ the transferee ”) by a disposal such as is mentioned in subsection (1).

3 If this subsection applies, section 266 and subsection (2) have effect, in relation to any subsequent disposal or other event, as if—

a the transferee were the person who had subscribed for the shares, b the shares had been issued to the transferee at the time when they were issued to the transferor, c there had been, in relation to the transferred shares, such a reduction by way of VCT relief in the transferee's liability to income tax as is equal to the actual reduction in respect of those shares of the transferor's liability, and d that deemed reduction were (despite the transfer) to be treated for the purposes of section 266 as an amount of VCT relief obtained by reference to the shares transferred.

4 Any assessment for withdrawing or reducing VCT relief because of a disposal or other event falling within subsection (3) is to be made on the transferee.