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