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  • FIRST POST
    • cidfenmaria
    • By cidfenmaria 17th Apr 18, 10:42 AM
    • 20Posts
    • 1Thanks
    cidfenmaria
    Tax Impication for re-evaluation when gifting a property?
    • #1
    • 17th Apr 18, 10:42 AM
    Tax Impication for re-evaluation when gifting a property? 17th Apr 18 at 10:42 AM
    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.
Page 1
    • Daniel54
    • By Daniel54 17th Apr 18, 12:11 PM
    • 598 Posts
    • 702 Thanks
    Daniel54
    • #2
    • 17th Apr 18, 12:11 PM
    • #2
    • 17th Apr 18, 12:11 PM
    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
    • By cidfenmaria 17th Apr 18, 1:00 PM
    • 20 Posts
    • 1 Thanks
    cidfenmaria
    • #3
    • 17th Apr 18, 1:00 PM
    • #3
    • 17th Apr 18, 1:00 PM
    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
    • By Daniel54 17th Apr 18, 1:17 PM
    • 598 Posts
    • 702 Thanks
    Daniel54
    • #4
    • 17th Apr 18, 1:17 PM
    • #4
    • 17th Apr 18, 1:17 PM
    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?
    Originally posted by cidfenmaria
    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
    • By cidfenmaria 17th Apr 18, 1:29 PM
    • 20 Posts
    • 1 Thanks
    cidfenmaria
    • #5
    • 17th Apr 18, 1:29 PM
    • #5
    • 17th Apr 18, 1:29 PM
    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?
    Last edited by cidfenmaria; 17-04-2018 at 1:32 PM.
    • Gabbs the Newt
    • By Gabbs the Newt 17th Apr 18, 1:51 PM
    • 132 Posts
    • 393 Thanks
    Gabbs the Newt
    • #6
    • 17th Apr 18, 1:51 PM
    • #6
    • 17th Apr 18, 1:51 PM
    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?
    Originally posted by cidfenmaria
    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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