01295 788104

Ivy Cottage, Bakers Lane. Tadmarton, Banbury, OX15 5TB

Search Archive



Tax-free gains on gifts to spouse or charity
29/07/2021

In most cases, there is no Capital Gains Tax (CGT) to be paid on the transfer of assets to a spouse or civil partner. There is, however, still a disposal that has taken place for CGT purposes effectively at no gain or loss on the date of the transfer. When the asset ultimately comes to be sold, the gain or loss will be calculated based on the original cost when the asset was first owned by the spouse or civil partner.

There are a few exceptions that couples should be aware of when the relief does not apply. This 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 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.


 

Latest News

Student tax scam warning

23/09/2021 – HMRC is warning new students starting university that they could be targeted by scammers trying to steal their money and … More...

New timetable for import controls

23/09/2021 – There are special procedures for importing goods into the UK. Following the end of the Brexit transition period on 31 … More...

Government announces winter COVID plan

23/09/2021 – The Prime Minister, Boris Johnson has set out the government’s autumn and winter plan for managing Covid. The … More...

 

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

»Sign up for the newsletter
» Login

 

Cookie Policy

 

Reg no 04427669. Incorporated in England & Wales.

Copyright © 2021 Christopher Dean & Co