CGT—gifts

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Produced in partnership with Laura Poots of Pump Court Tax Chambers
Practice notes

CGT—gifts

Copyright © 2025 LexisNexis

Produced in partnership with Laura Poots of Pump Court Tax Chambers

Practice notes
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A gift of an Asset is a disposal for Capital gains tax (CGT) purposes. It can, therefore, trigger a CGT charge on the Gain deemed to have arisen.

The general rule

The disposal made by way of a gift is deemed to have been made for a consideration equal to the Market Value of the asset. The donee or transferee’s base cost will be the market value of the asset. For information regarding the disposal value, see: Introductory guide to CGT.

The same treatment will apply for any bargain made otherwise than by way of bargain at arm’s length, which may include a sale at an undervalue, but not in every case.

Any gain triggered on a gift or sale at an undervalue will be taxable in the normal way, and losses will be allowable in the normal way.

Gifts between spouses and civil partners

A gift to a spouse (or civil partner) will not trigger any gain or loss, provided the couple are living together.

The transferor is treated as making the disposal for

Laura Poots
Laura Poots chambers

Pump Court Tax Chambers

Laura practises in all areas of taxation, offering advice on planning and also acting in the course of disputes and litigation. Her direct tax practice covers personal and corporate taxes. She has particular expertise in private client advice and planning for individuals, trustees and family businesses (UK and international). Laura’s indirect tax practice includes VAT, SDLT and landfill tax. She also advises on commercial and professional negligence disputes involving tax issues. Laura is qualified to accept Public Access instructions and is happy to accept instructions under the Special Advocacy Scheme, and the Joint Advisory Scheme.

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Jurisdiction(s):
United Kingdom
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Key definition:
Asset definition
What does Asset mean?

(1) Any item of value; (2) The holdings of a fund, which may include stocks, shares, fixed-interest securities or cash; (3) The main types of investment available: bonds, equities, real estate, commodities etc.

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