Can my husband give me a property tax-free?

29 November 2019

Q

My husband owns an investment property worth around £200,000. Can he transfer it to me without paying stamp duty or capital gains tax?

From
JH/via email

A

A transfer of an asset between spouses, or civil partners is treated as a ‘no gain, no loss’ disposal. This means that your husband won’t have to pay CGT on his ‘disposal’ to you and you won’t have to pay stamp duty on your acquisition from him.

However, for CGT purposes, you will be deemed to have acquired the property at the same cost that your husband originally bought it for. This will be taken into account if you dispose of the property in the future when working out any potential CGT liability that you may have.

It is important to note that transfers between spouses are only treated in this way if the spouses are living together at some point during the tax year in which the transfer takes place.

Patrick Connoly, certified financial planner at Chase de Vere

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