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
Replies (3)
Please login or register to join the discussion.
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.