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Tax Impication for re-evaluation when gifting a property?

cidfenmaria
cidfenmaria Posts: 47 Forumite
First Post First Anniversary
in House buying, renting & selling
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.

Comments

  • Daniel54
    Daniel54 Posts: 832 Forumite
    First Anniversary Name Dropper First Post
    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
    cidfenmaria Posts: 47 Forumite
    First Post First Anniversary
    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
    Daniel54 Posts: 832 Forumite
    First Anniversary Name Dropper First Post
    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
    cidfenmaria Posts: 47 Forumite
    First Post First Anniversary
    edited 17 April 2018 at 1:32PM
    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
    Gabbs_the_Newt Posts: 154 Forumite
    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.
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