Pump Court Tax Chambers
4 Experts
1 Contributions by Pump Court Tax Chambers Experts
PRACTICE NOTES
Giving an asset away counts as a disposal for capital gains tax (CGT). This may, therefore, crystallise a CGT charge on any gain that is treated as having arisen.
The general rule
For CGT purposes, a gift is treated as a disposal for consideration equal to the asset’s market value. The recipient’s (donee or transferee’s) base cost is that market value. For details on the disposal value, see: Introductory guide to CGT. The same approach generally applies to any bargain not made at arm’s length, which can include a sale for less than full value, though not in every instance. Any gain arising on a gift or a sale at an undervalue is chargeable in the usual way, and losses are allowable in the normal manner.
Gifts between spouses and civil partners
A transfer to a spouse or civil partner will not give rise to any gain or loss,
Private Client
If you expected to see yourself on this page, click here.
