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Where Taxpayers and Advisers Meet

Capital Gains Transfer

messroom
Posts: 3
Joined: Fri Jan 12, 2018 10:46 am

Capital Gains Transfer

Postby messroom » Fri Jan 12, 2018 10:58 am

Hi,
I recently received £19500
Cash payment from a charitable society the closed which resulted in a payout to the remaining members.
My wife and I are basic tax payers with £11500 tax relief each per annum. Will I have to pay Capital Gains tax or can I transfer half my cash gain to my wife ?

wamstax
Posts: 1828
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: Capital Gains Transfer

Postby wamstax » Fri Jan 12, 2018 11:58 am

Unfortunately you cannot transfer assets to your wife tax free after the assets realisation or disposal
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

bd6759
Posts: 2839
Joined: Sat Feb 01, 2014 3:26 pm

Re: Capital Gains Transfer

Postby bd6759 » Fri Jan 12, 2018 7:59 pm

What assets have you disposed of? i don't think there is any CGT here at all.

messroom
Posts: 3
Joined: Fri Jan 12, 2018 10:46 am

Re: Capital Gains Transfer

Postby messroom » Fri Jan 12, 2018 10:07 pm

Do I not have to declare a capital gain of unearned income above £11500 which is my personal allowance and taxed at 10% ?

bd6759
Posts: 2839
Joined: Sat Feb 01, 2014 3:26 pm

Re: Capital Gains Transfer

Postby bd6759 » Sat Jan 13, 2018 12:05 pm

CGT is not charged on income.

CGT is charged on the dipsoal of an asset, or where a capital sum is derived from asset.

The second sentence of your origianl post does not mak grammatical sense, but it seems that you were a member of a mutual society and received a share of its assets when it was wound up. If there is any tax to pay, it would be by the society if it diposed of its assets. The distribution to members is not a taxable ocasion.

How did the society acquire the funds to distribute?

messroom
Posts: 3
Joined: Fri Jan 12, 2018 10:46 am

Re: Capital Gains Transfer

Postby messroom » Sat Jan 13, 2018 12:51 pm

It was called "The sick and orphans society" which paid out to its members if they were off work due to sickness.
It had been going for 50 years but its remaining members recently voted to wind it up.
We paid £1 a month through our salary.

bd6759
Posts: 2839
Joined: Sat Feb 01, 2014 3:26 pm

Re: Capital Gains Transfer

Postby bd6759 » Sat Jan 13, 2018 1:03 pm

This sounds a bit like an investment club. Hopefully the trustees took advice on the implications of winding up and will be able to advise you.


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