Getting my head round CGT on gifted stocks...

Benlovescake

Hi guys,

Can anyone please enlighten me on this as my internet research has got me going round in circles!

If I gift a stock/share to my wife, I understand that I probably won't have to pay capital gains tax on the transfer. But if my wife later sold that gifted stock and made a profit on the sale, would she have to pay CGT on any of the profit/gain she made on the sales?  (NB am assuming that any financial profit she makes would exceed her free annual CGT allowance)

Thanks!

Ben

ColdIron

You can gift shares to your spouse without triggering a CGT event (it's not a disposal). Of course when they dispose of them CGT may be due for the whole period both you and your spouse held them. Their base cost will be your base cost so keep records of your purchase details

https://www.gov.uk/capital-gains-tax/gifts

https://www.litrg.org.uk/savings-property/capital-gains-tax/capital-gains-tax-gifts#1

Benlovescake

ahh, thank you! So, as you say, "when they dispose of them CGT may be due ", this tells me that they may still be liable for CGT when they sell the stock, even if it was gifted to them... makes sense.

Appreciate you reply