CGT Transfer between spouses

CGT Transfer between spouses

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Husband and wife jointly own a rental property. Wife transfers her half to husband, and he now owns 100% of property. Although it is a no gain / no loss transfer, are any entries required on Self Assessment returns to reflect the transfer ?
Dave

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By Jon Stow
03rd Jul 2005 18:55

Prudent
It would be prudent to note the transfer in the Additional Information section of the Return since presumably the letting income in respect of the property will disappear and the Land and Property pages will not need to be completed next year. this will avoid an aspect enquiry on this issue.

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By User deleted
01st Jul 2005 15:58

Possibly
Section 3A TCGA 1992 (Reporting Limits) states...

"(3) For the purposes of subsection (1)(b) above a “chargeable disposal” is any disposal other than—

(a)...

(b) a disposal the consideration for which is treated by virtue of section 58 (husband and wife) as being such that neither a gain nor a loss would accrue."

So, if this was the only disposal made by the wife for the year then no entry on the Tax Return would be required, as the reporting limits have not been breached.

However, subsection (1)(b) only determines whether the reporting limits have been breached. Therefore, if other chargeable disposals have been made by the wife during the year which themselves breach the reporting limits (chargeable gains are greater than the exempt amount or consideration for all other chargeable disposals exceed four times the exempt amount), then I believe that the transfer will need to be declared on the wife's Tax Return along with the other disposals.

Hope this helps.

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