Tax Impication for re-evaluation when gifting a property?

cidfenmaria · 17 April 2018 at 9:42AM

Hi

Is it important to evaluate the value of the property when I gift it to my wife? Does it have any tax implication for the future when it comes to letting & selling. etc?

It shows the value has increased since I bought it

Thanks for any suggestion.

Daniel54 · 17 April 2018 at 11:11AM

If or when your wife comes to sell the property,the capital gain will be based on the difference between the selling price and the original cost when you purchased it.

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

cidfenmaria · 17 April 2018 at 12:00PM

Hi

thanks from the link I think the capital gain should be based on the difference between the selling price and the value at the time of my wife own it? rather than the price when I bought it

is that correct?

Daniel54 · 17 April 2018 at 12:17PM

cidfenmaria wrote: »

Hi

thanks from the link I think the capital gain should be based on the difference between the selling price and the value at the time of my wife own it? rather than the price when I bought it

is that correct?

That is not what it says in the link provided

If you gift your wife the property,she is deemed to have acquired it at the price you paid for it.

This is an old article but sets things out pretty clearly.

https://www.taxinsider.co.uk/681-How_to_Correctly_Gift_Property_to_Spouses.html

cidfenmaria · 17 April 2018 at 12:29PM

thanks

"Their gain or loss will be calculated from when you or they first owned it."

is this not saying on the date of my wife (first) own it?

or it has to be at the time of me first own it

Would I not bother evaluating the property prior to gifting then?

Gabbs_the_Newt · 17 April 2018 at 12:51PM

cidfenmaria wrote: »

thanks

"Their gain or loss will be calculated from when you or they first owned it."

is this not saying on the date of my wife (first) own it?

or it has to be at the time of me first own it

Would I not bother evaluating the property prior to gifting then?

If you read very carefully, you will notice that spouses are treated differently (my words) "as one unit".

Transfers between spouses are deemed as nil gain or loss, and disposal is offset against the original purchase price for CGT.

Tax Impication for re-evaluation when gifting a property?

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