Blog


Warning: preg_match(): Compilation failed: invalid range in character class at offset 4 in /home/lowtax39/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 1367

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/lowtax39/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 683

Warning: Invalid argument supplied for foreach() in /home/lowtax39/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 690

Warning: preg_match_all(): Compilation failed: invalid range in character class at offset 4 in /home/lowtax39/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 683

Warning: Invalid argument supplied for foreach() in /home/lowtax39/public_html/wp-content/plugins/lightbox-plus/classes/shd.class.php on line 690

Warning: Cannot modify header information - headers already sent by (output started at /home/lowtax39/public_html/wp-content/themes/vantage/header.php:11) in /home/lowtax39/public_html/wp-content/plugins/informanagementimg/informanagement.php on line 67

Warning: Use of undefined constant cust - assumed 'cust' (this will throw an Error in a future version of PHP) in /home/lowtax39/public_html/wp-content/plugins/informanagementimg/informanagement.php on line 135

12-02-2020
Gifts to spouse or charity

3cb0c635 313e 4fcd a9e2 a6713c5e4933 - Blog

There is usually no Capital Gains Tax (CGT) to be paid on the transfer of assets to a spouse or civil partner. However, the gift is still treated as a disposal that has taken place for CGT purposes, on a no- gain no-loss basis. When the asset is ultimately sold, the gain or loss will be calculated using the disposal proceeds less the asset cost when first acquired by the original spouse or civil partner.

There are a few exceptions that couples should be aware of where the relief does not apply. This mainly relates to the use of goods which are sold on by the transferee’s business and for couples that were separated and not living together for the entire tax year when the assets were transferred. Spouses or civil partners that lived together at any point in the tax year when the assets were transferred can still benefit from these rules. If a transfer did not qualify then the asset must be retrospectively valued at the date of the transfer and the transferor is liable for any gain or loss.

There are similar rules for assets that are gifted to charities. However, CGT may be due where an asset is sold to a charity for more than what was paid for it and less than the market value. The gain in this case would be calculated based on what the charity paid rather than the market value of the asset.

Source: HM Revenue & Customs | 12-02-2020

Back

image001 2 - Blog