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Where Taxpayers and Advisers Meet

transfer bnetween spouses

Jaria
Posts:14
Joined:Wed Aug 06, 2008 3:59 pm
transfer bnetween spouses

Postby Jaria » Fri Sep 29, 2023 4:22 pm

HI

i wonder if someone would kindly let me know the following for the tax year 2022/2023

I understand that the CGT allowance is £6000 so obviously any gains have to be reported if in excess of this allowance

Does that mean that the maximum sale price before declaring to the revenue is 4 x £6000 so hypothetically if you sold shares for £26000 but only made a profit of say £5000 you would have to disclose this.

Secondly if my spouse transfers say £4000 of a stock which initially cost her £2500 3 years ago and I then sell it for £5900 would my gain be £1900 or £3400

Lastly If I bought shares for £3000 sold them for £4000 and then a week later bought them back for £3500 and the same day sold them for £3400 what would or should I declare to the revenue assuming that I have already made a gain of say £5900
Thanks a lot

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: transfer bnetween spouses

Postby bd6759 » Fri Sep 29, 2023 6:31 pm

CGT exemption for 2022-23 is £12,300

The exemption for 2923-24 is £6,000.

The exemption applies to the gain, not the proceeds. If you buy an asset for £20,000 and sell it for £25,000 your gain is £5,000 and covered by the exemption, so there is no requirement to report.

If you are given notice under s8 to complete a tax return you must give details of all disposals unless the total proceeds are less than 4 x the exemption and the gains are less than the exemption. If you have not been given notice you don’t to report disposals unless your gains exceed the exemption.

I’m general terms you acquire the original cost if an asset is transferred from a spouse. Your gain is £3,400.

The sale for £4,000 is matched with the pool of £3,000. A gain of £1000.
The sale for £3,400 is matched with the purchase for £3,500. A loss of £100.
Net gain £900.
You need to declare this, plus’s your other gains of £5,900.


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