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Capital Gains Transfer

Posted: Fri Jan 12, 2018 10:58 am
by messroom
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 ?

Re: Capital Gains Transfer

Posted: Fri Jan 12, 2018 11:58 am
by wamstax
Unfortunately you cannot transfer assets to your wife tax free after the assets realisation or disposal

Re: Capital Gains Transfer

Posted: Fri Jan 12, 2018 7:59 pm
by bd6759
What assets have you disposed of? i don't think there is any CGT here at all.

Re: Capital Gains Transfer

Posted: Fri Jan 12, 2018 10:07 pm
by messroom
Do I not have to declare a capital gain of unearned income above £11500 which is my personal allowance and taxed at 10% ?

Re: Capital Gains Transfer

Posted: Sat Jan 13, 2018 12:05 pm
by bd6759
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?

Re: Capital Gains Transfer

Posted: Sat Jan 13, 2018 12:51 pm
by messroom
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.

Re: Capital Gains Transfer

Posted: Sat Jan 13, 2018 1:03 pm
by bd6759
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.