CGT wife transferred half share of property to husband in 1994

CGT wife transferred half share of property to...

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A client transferred half of the value of a flat that she inherited in the late 80s to her husband in 1994.  They now want to transfer ownership to their son.  

Can I still calculate the husband's share as including indexation allowance at the point that the original transfer was made?  I seem to remember lots of articles suggesting that transfer was a good idea, prior to indexation being discontinued for individuals.  Please can someone let me know if I am right or wrong on this point.  

Thanks.

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By MJShone
19th Dec 2011 13:35

Yes

You can include indexation up to the date of transfer. The transfer is deemed to have taken place for consideration that would have meant the wife would have made neither a gain nor a loss (S 58 TCGA 1992). In 1994 that would have meant her CGT base cost plus any indexation up to the point of transfer to husband. So hasband's base cost is wife's orginal base cost plus indexation up to 1994.

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JEM
By jem
19th Dec 2011 13:37

Thanks so much, I had worked out provisional figures last year and included the indexation at the point of transfer in respect of the husband's share, but just wanted some reassurance that this was correct.

 

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