Can costs be transferred between spouses for CGT?

Can costs be transferred between spouses for CGT following sale of a 50/50 owned second property?

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My wife and I sold a property we owned jointly. No reliefs apply so we will suffer some CGT.

We were intending to allocate the legal and other transactional costs 50/50.

However, that would push me (not her)  into the higher rate tax bracket.

So we could save a little tax by my charging all of the transactional costs to my account instead of splitting them 50/50.

Is that allowable? If necessary I could literally reimburse her for the costs she suffered.

It's not a lot of money but I'd rather keep it than hand it over to HMRC.

 

Replies (11)

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By bettybobbymeggie
23rd May 2024 15:52

I vote no.

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By cohen
23rd May 2024 16:33

Absolutely not.

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By Bobbo
23rd May 2024 16:41

Before the property was sold you might have been able to do something to achieve what you desire (more of the gain taxed on your wife rather than you), but not afterwards.

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Replying to Bobbo:
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By David Ex
23rd May 2024 17:00

Bobbo wrote:

Before the property was sold you might have been able to do something to achieve what you desire (more of the gain taxed on your wife rather than you), but not afterwards.

The false economy of failing to take professional advice.

OP: the best time to think about tax planning is in advance, if that’s not a truism.

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Replying to David Ex:
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By More unearned luck
23rd May 2024 18:15

In general yes, but in this case the tax saving sought is 'not a lot' and the other day TD quoted £5,250 + VAT for some work, but dislike of the potential client might have been a pricing factor. And since we are talking about the sale of property there would be legal fees to factor in.

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Replying to David Ex:
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By mabryant
23rd May 2024 19:55

I'm a retired FCA but always worked in industry and tried hard to avoid tax - I leave that to the people who like tax. I do take advice on the big matters, but try to muddle through on the little ones.

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Replying to mabryant:
Stepurhan
By stepurhan
24th May 2024 08:35

Then we can only assume that little tax is at stake, since you didn't take advice on this one.

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Replying to stepurhan:
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By mabryant
24th May 2024 11:04

:-) No need to assume anything. My original post said "It's not a lot of money but I'd rather keep it than hand it over to HMRC.".

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Replying to mabryant:
DougScott
By Dougscott
24th May 2024 08:37

Your suggestion wouldn't "avoid tax" it would evade tax!

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Replying to Dougscott:
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By mabryant
24th May 2024 11:02

Hence my question. I would not wish to inadvertently evade tax.

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By 356B
23rd May 2024 19:43

All expenses should be deducted before the gain is apportioned, so no, you can't do it.

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