As a rule, there is no Capital Gains Tax to pay after giving assets to your spouse or civil partner. The same applies to the disposal of an asset.
But, there may be Capital Gains Tax to pay on assets transferred to an ex-partner after the end of a relationship.
For Capital Gains Tax purposes some of the most common types of assets include:
- Certain kinds of bonds, investments, and shares (not ISAs or PEPs).
- Personal possessions (e.g. antiques, jewellery, paintings).
- Property (usually excludes selling or transferring your main home).
Transferring an Asset When Separated
What happens if you transfer an asset to your ex-partner while going through a separation? It would depend on whether you lived together at any point during the tax year that you transferred the asset.
In this case, the normal Capital Gains Tax rules on gifts to a spouse or civil partner would apply (usually as a tax allowance).
As a rule, other circumstances would mean that you would have to pay Capital Gains Tax. If so, you would need to work out a valuation of the asset on the date that you transferred it.
Note: A different section explains how to work out the gain for CGT (or loss). The tax year in the United Kingdom runs from the 6th of April to the 5th of April in the following year.
Transferring an Asset after Divorce or Dissolution
What happens if you transfer an asset after you got divorced or you dissolved your civil partnership? In this case, you may need to pay Capital Gains Tax on assets that you transfer after the relationship has ‘legally’ ended.
Some of the rules on tax when transferring assets after a relationship ends are complex. It is best to contact HM Revenue and Customs or get help from a tax adviser or an accountant.
You would need to prepare some information if you get someone to help you work out the gain or the loss. They will need to know the date of:
ALSO IN THIS SECTION
Splitting Up Money and Property | How to divide assets and possessions ‘fairly’ when couples separate.
Understanding Capital Gains Tax | Check the gains and allowances (tax rates) you can make each year.