Income Tax Act 2007 section 267

Transfers of shares between spouses or civil partners

Section 267 protects VCT income tax relief when shares are transferred between spouses or civil partners who are living together, and ensures that the receiving spouse steps into the shoes of the original subscriber for the purposes of any future clawback of that relief.

• A transfer of VCT shares between spouses or civil partners living together does not itself trigger a withdrawal of VCT relief under section 266.
• After the transfer, the receiving spouse (the transferee) is treated as if they had originally subscribed for and been issued the shares at the same time as the transferor.
• The transferee is deemed to have received VCT relief equal to the actual income tax reduction the transferor obtained on those shares.
• Any subsequent event that triggers withdrawal of VCT relief will result in an assessment on the transferee, not the original transferor.