How does gift to spouse affect Section 104 holding?

gardening_diva2

If a gift a number of shares from my Section 104 holding to my spouse, how does that affect my remaining pool when I come to calculate CGT if I later sell some shares myself?
Do I just reduce the Pool quantity by the amount I gifted? That would raise the average cost per share though. Is there an Allowable cost to take into consideration?
I understand how to do the calcs if I just sell, but I'm totally confused on how a gift would affect my pool & CGT calcs.

eskbanker

You wouldn't just reduce the pool quantity, you'd also reduce the total acquisition cost by taking out the quantity of those gifted multiplied by the average cost, thereby preserving the average cost per share for those that remain.

Notepad_Phil

And just in case - don't forget your spouse will then start with the transferred shares valued at that average price per share.