Jointly held Qualifying BR account transferred to sole name

amelia1983 · August 14

Thoughts....

If we have a husband and wife who jointly own a qualifying BR investment and they want to transfer this to the husbands sole name – will the in-specie transfer cause the 2 year clock for ownership to start again for her previous shares? Or as it is already qualifying and in one ‘pool’ of shares held, this wouldn’t cause any IHT issues.

Thank you!

moosha · August 18

Hi,

HMRC confirm that the ownership period can be carried over between spouses on death but there is no such rule for lifetime transfers -

https://www.gov.uk/hmrc-internal-manuals/shares-and-assets-valuation-manual/svm111090

So, assuming this is a lifetime transfer, I'd say 50% of the joint holding continues to qualify as the ownership is consistent with 50% requiring a new two year holding period.

les_cameron · August 18

@moosha said:
Hi,

HMRC confirm that the ownership period can be carried over between spouses on death but there is no such rule for lifetime transfers -

https://www.gov.uk/hmrc-internal-manuals/shares-and-assets-valuation-manual/svm111090

So, assuming this is a lifetime transfer, I'd say 50% of the joint holding continues to qualify as the ownership is consistent with 50% requiring a new two year holding period.

@moosha said:
Hi,

HMRC confirm that the ownership period can be carried over between spouses on death but there is no such rule for lifetime transfers -

https://www.gov.uk/hmrc-internal-manuals/shares-and-assets-valuation-manual/svm111090

So, assuming this is a lifetime transfer, I'd say 50% of the joint holding continues to qualify as the ownership is consistent with 50% requiring a new two year holding period.

You also might be able to keep the period if the successive transfer rules kick in - hopefully they survive 2 years making that a moot point!
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm25331

Jointly held Qualifying BR account transferred to sole name

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