Sale of Gifted property by spouse

Checkchapelcgt

I bought a house in my name in 2009. When we bought our next house where we live today, I gifted my first house in wife's name through a deed in 2021. It has been currently let out. I want to check what happens if my wife sells the house. Would the capital gains tax be charged based on increase of value from 2021 to 2025 or from 2009 to 2025?
Please suggest.

Bookworm225

very simple scenario

you were legally married and living together at date of gift in 2021
she therefore acquires the property at your original 2009 cost
CG22200 - Transfer of assets: between spouses or between civil partners living together - HMRC internal manual - GOV.UK

she will therefore pay CGT on the full gain since 2009 given she is the only owner of it at point of sale
(do not try to remake you a co-owner before sale as that is a tax dodge HMRC are well aware of and have specific powers to "set aside" such a transaction ie ignore)

Checkchapelcgt

One more please.
If my wife gifts the house to my daughter who will turn 18 soon, will she be expected to pay Inheritance tax immediately or this comes into calculation only when the person gifting dies with in 7 years of doing that. What are the CGT implications for my daughter if she sells it.

Bookworm225

Checkchapelcgt said:

One more please.
If my wife gifts the house to my daughter who will turn 18 soon, will she be expected to pay Inheritance tax immediately or this comes into calculation only when the person gifting dies with in 7 years of doing that. What are the CGT implications for my daughter if she sells it.

please do some basic fact finding yourself, this is simple info readily available online

poseidon1

Checkchapelcgt said:

One more please.
If my wife gifts the house to my daughter who will turn 18 soon, will she be expected to pay Inheritance tax immediately or this comes into calculation only when the person gifting dies with in 7 years of doing that. What are the CGT implications for my daughter if she sells it.

 Gifts of property  to people other than spouses are taxable disposals liable to CGT on the person making the gift. As for the IHT, you can easily research that for yourself.

anselld

At the point you gifted the first property in 2021 were you both living there as your main residence?  I think if that is the case then she inherits your PPR history.  The CGT would still be based on the gain since 2009 but you would apportion the period of letting vs the period where either or both of you were resident.

sheramber

Bookworm225 said:

anselld said:

At the point you gifted the first property in 2021 were you both living there as your main residence?  I think if that is the case then she inherits your PPR history.  The CGT would still be based on the gain since 2009 but you would apportion the period of letting vs the period where either or both of you were resident.

the gift is from mother to daughter. The no gain, no loss rule does not apply and daughter cannot inherit PRR

The gifting on 2021 was by the OP to his wife. 

Bookworm225

sheramber said:

Bookworm225 said:

anselld said:

At the point you gifted the first property in 2021 were you both living there as your main residence?  I think if that is the case then she inherits your PPR history.  The CGT would still be based on the gain since 2009 but you would apportion the period of letting vs the period where either or both of you were resident.

the gift is from mother to daughter. The no gain, no loss rule does not apply and daughter cannot inherit PRR

The gifting on 2021 was by the OP to his wife. 

my answer stands, it relates to the second scenario (post #3): If my wife gifts the house to my daughter 

daughter acquires house at market value on date of gift. Mother pays CGT on gain since 2009 to date of gift (less any PRR mother is entitled to)