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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Transfer of assets between husband and wife or between civil partners: separate but connected persons

TCGA92/S35 (5)

As spouses and civil partners are separate persons an election under TCGA92/S35 (5) (by which gains in respect of assets held at 31 March 1982 are to be computed by reference to the value of each asset at that date only) by one of them only affects assets owned by that person. This is so whether the election is made before or after the introduction of independent taxation, see CG16760. So each of them is entitled to make their own election and such an election will only affect the value of their own assets.

The only exception to this rule is that where an asset is transferred between them at no gain/no loss under TCGA92/S58 the entitlement to rebasing on the disposal of that asset depends on whether an election has been made by the transferor rather than by the transferee, see CG16850+.

TCGA92/S286 (2)

A husband and wife and civil partners are connected with each other and with each other’s relatives, as defined in TCGA92/S286 (8), see CG14580.

TCGA92/S18 treats any transfer between connected persons as a transaction otherwise than by way of a bargain at arms length. Unless TCGA92/S58 applies, see CG22010, Section 17 provides that the deemed consideration on the transfer is the market value of the asset transferred on the date of the transfer.

Transfers between spouses or between civil partners living together


Any transfer of an asset between a husband and a wife or between civil partners of each other who are living together is treated, with certain exceptions (see CG22210), by TCGA92/S58 as taking place for such consideration as will give neither a gain nor a loss to the transferor.

How this rule works is explained in more detail at CG22200+ below.