CGT & IHT

CGT & IHT

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Is a British person who is married, is in the UK Armed Forces and been serving abroad for over 3 years,  allowed to transfer his CGT allowance and/or IHT allowance over to his wife while he is still serving abroad? (his wife lives permanently in the UK)

Thank You

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By LyneT
07th Jun 2012 14:27

This is the only exemption which is available which could apply.

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM11281.htm 

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By MJShone
08th Jun 2012 08:47

No, but...

Husbands and wives can transfer assets between themselves CGT and IHT free (assuming, for IHT, that both are domiciled in the UK for tax purposes). You do sometimes have to be a little wary (eg s16A Taxation of Chargeable Gains Act 1992 or "associated operations" for IHT) but, for example, a husband could transfer an asset to his wife. There's no gain or loss on that transfer. His base cost for CGT purposes becomes her base cost. She sells the asset and her CGT annual exemption can be set off against the gain.

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By Akinfenwa
08th Jun 2012 10:06

Many thanks for the above, however my question is more about transferring the CGT/IHT allowance between spouses,  more than transferring assets between spouses..

 

 The scenario was in a Financial Planning exam that I sat a few weeks ago.

 

 

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