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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Husband and wife or civil partners: dealt with separately

A husband or wife or civil partner are separate individuals and are to be treated as such for Capital Gains Tax purposes. You should compute their chargeable gains or allowable losses separately and assess each of them on their own gains.

A husband and wife or civil partners of each other are connected persons under TCGA92/S286 (2), see CG14580, and so transfers of assets between them would normally be for deemed consideration equal to the market value at the date of transfer.

For a transfer which takes place in a year of assessment at some time in which the couple are living together the market value rule is over-ridden by TCGA92/S58 under which any transfer takes place at no gain/no loss.

So a transfer between a husband and wife or between civil partners of each other will only be at market value if they are separated throughout the year of assessment in which the transfer takes place.

If you need advice on particular aspects of Capital Gains Tax relating to transfers between husband and wife or between civil partners of each other and other related issues you should refer as follows.

  • Transfers of assets between a husband and wife or between civil partners - introduction and definitions, see CG22000+.
  • Transfers of assets between a husband and wife or between civil partners - computations and related subjects, see CG22200+.
  • Transfers of assets between a husband and wife - following permanent separation or divorce, or between civil partners - following a permanent separation or dissolution of the partnership, see CG22400+.
  • Private residence relief - extended period of ownership and residence on transfer between a husband and wife or between civil partners, see CG64950+.
  • Private residence relief - division of residence between a husband and wife on separation or divorce or between civil partners on separation or dissolution of the partnership, see CG65330+.
  • Private residence relief - dependent relative relief for a husband and wife or civil partners, see CG65590+.
  • Valuation of land held jointly by a husband and wife or civil partners, see CG74249.