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NRCGT - transfers between non -res Husband & Wife

Base cost calc?

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Hi all,

Here's the scenario. Husband owns a property (acq'd in 2000 for £150,000)

Both H and W became non-res in 2011 and are still non-res.

Value on 5 April 2015 is approx £300,000 and the value at 30 April 2021 is £400,000.

My question is this, if the Husband transfers 50% of the property to the Wife (say today) at no gain/no loss she would, under usual CGT rules, acquire 50% of his original base cost. What I am struggling to find is any indication as to whether she also receives the 2015 uplift in value, given that her share was acquired post 5 April 2015. My instant reaction is that she doesn't but I'm doubting myself.

Any help or guidance would be greatly appreciated.

Thanks

Replies (8)

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Replying to accountantccole:
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By Liam.em
10th Jun 2021 11:50

Thanks,

I did see this article however there wasn't a real conclusion to the OP's question, more of an opinion. was offered.

Thanks (1)
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By Justin Bryant
10th Jun 2021 11:40

If the April 2015 MV is the automatic default (like March 82 MV uplift was I recall), then W should acquire at April 2015 MV, but it would not make any difference in practice as long as they remain non-UK resident at all relevant times.

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Replying to Justin Bryant:
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By Liam.em
10th Jun 2021 11:53

Thanks,

That is the key. I can't find an answer to determine whether the uplift is automatic, which would make a large difference to the overall CGT due (i.e. 50% of the original base cost vs 50% of uplifted value)

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Replying to Liam.em:
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By Justin Bryant
10th Jun 2021 11:58

I think you'll find that in the absence of an election/claim for one of the alternative calculations it's the default treatment.

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Caroline
By accountantccole
10th Jun 2021 11:42

Make sure they have taken advice in the place of residence too. The rebasing rules only relate to Uk taxes so they may still have a foreign liability depending where they are based

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By The Dullard
10th Jun 2021 12:02

The transfer is deemed by TCGA 1992, s 58 to take place at a consideration that produces neither a gain nor a loss. The amount of the consideration that does that thing is, of course, 50% of £300,000.

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Replying to The Dullard:
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By Liam.em
10th Jun 2021 12:12

Yes you're right.

Put that way it is actually quite simple.

Sometimes you just need a fresh perspective on things.

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