Transfer of capital loss to spouse

[TamsinHogben]

My partner and I are likely to have a capital gain in excess of the allowance in tax year 2014/15 on disposal of a jointly-owned rental property (there is some reduction to the topline gain as it was our primary residence for several years).

My partner is rolling forwards a large capital loss he made in a partnership in 2010. He is likely to still have a loss after all his gains for 2014/15 are taken into account. I have no capital losses to offset any gains.

Is it possible to transfer some of his loss to me? We are not currently married...

Thanks
Tamsin

[AvocadoK]

No, you cannot transfer a loss from one person to another.

If you were married, you could transfer the property to him at no gain/no loss, and then he could use his losses against the whole gain. But he would not get PPR relief on 'your' half of the gain if it is not your joint PPR at the time you transfer it.

As you are not married, a transfer of the property to him would count as a taxable disposal at market value, so you would end up paying CGT on your share of the gain.

AK

[AvocadoK]

No, you cannot transfer a loss from one person to another.

If you were married, you could transfer the property to him at no gain/no loss, and then he could use his losses against the whole gain. But he would not get PPR relief on 'your' half of the gain if it is not your joint PPR at the time you transfer it.

As you are not married, a transfer of the property to him would count as a taxable disposal at market value, so you would end up paying CGT on your share of the gain.

AK