CGT on gifted property from spouse

[walrusnick]

Hello

My wife has a BTL property in London, it has no mortgage, we're thinking of selling it and trying to reduce our CGT exposure.

She bought the property for £165k (1999) it's now worth about £600k (2020). If she gifts the whole property to me (Value at gift date £600k) and I sell it soon after being gifted the property, is it assumed that the purchase price is £165k (original purchase price from 1999) or £600k (price the property was gifted to me 2020). Am i exposed to the whole of my wifes CGT? or will I have no CGT because sale price will be very close to the value of the property at the date she gifted it to me?

Thanks in advance for your help.

Nick

[carjaxx]

Though no CGT is liable on the gift from your spouse to you, you acquire the base cost of 165k from her as well so her CGT ability becomes your liability. Whether this is advantageous depends on the individual circumstances surrounding your allowances and exemptions (such as whether it's your primary residence)

Disclaimer: I am not a tax professional, I just happened to read some articles relevant to your situation in trying to find an answer to my own. Searching the web for "CGT on a gift" will give more info

[AGoodman]

Confirmed (am a tax professional)

You could consider her giving you a share by way of a declaration of trust. That would allow you to use both of your annual exemptions (saving about 28% * £3.4k = in tax) and if both are basic rate taxpayers would allow you to both use the remainder of your basic rate (18% vs 28%).