Enter Your E-mail

Tax planning possibility:
•    Disposals between spouses/civil partners are deemed to occur on a ‘no gain/no loss’ basis.
•    If one spouse/civil partner owns an asset which on sale has produced a capital gain in excess of the annual exempt amount and the other spouse/civil partner has an asset standing at a potential negligible-value loss, the negligible value asset can be transferred to the spouse/civil partner, the loss offset and capital gain reduced.

Example:
Fred has a negligible-value asset standing at loss of £43,500 but his wife has sold property owned in her own name producing capital gains totalling £60,000.
If Fred was to transfer the loss-making asset to his wife, she could offset the loss against the gains made and receive a reduced CGT bill.