Income Tax Act 2007 section 257H

Transfers between spouses or civil partners

Section 257H deals with the transfer of SEIS shares between spouses or civil partners, ensuring that the relief remains attached to the shares and passes to the recipient spouse or civil partner rather than being triggered as a disposal.

• When SEIS shares are transferred between spouses or civil partners during their lifetimes, the transfer is not treated as a disposal that would trigger withdrawal of relief
• The receiving spouse or civil partner steps into the shoes of the original subscriber for all purposes of the SEIS rules, including the amount subscribed, the tax year of relief, and the amount of relief obtained
• If the SEIS relief attributable to the shares had already been reduced before the transfer, the same reduction carries across to the receiving spouse or civil partner
• Any future event that triggers withdrawal or reduction of SEIS relief results in the assessment being made on the receiving spouse or civil partner, not the original subscriber