The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
When a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil partners are referred to jointly as ‘spouses’ in this guidance note, but the commentary applies equally to both. For a discussion on the meaning of chargeable asset, see the Exempt assets for capital gains tax guidance note.
The disposal is deemed to take place at ‘no gain / no loss’ (which may also be written as NGNL) provided the couple is:
married or in civil partnership, and
living together during the tax year
TCGA 1992, s 58
In Scotland, a ‘common-law’ marriage is recognised as a legal marriage once there has been a declaration before the Court of Session (ie in the absence of a marriage ceremony). In Scots law, this is known as a marriage ‘by habit and repute’. Disposals between such a couple are also deemed to take place at no gain / no loss.
A no gain / no loss disposal is one where neither a gain nor a loss arises to the transferor as a result of the disposal.
A couple does not have to be physically living in the same house to be ‘living together’. As long as the marriage / civil partnership has not broken down, the couple are treated as living together for capital gains tax purposes even if they have separate homes.
The no gain / no loss proforma can be expressed as:
This can be written in a formula as:
Deemed proceeds = costs of acquisition or market value at 31 March 1982 + enhancement expenditure + costs of sale
This no gain / no loss rule applies only to
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
This note provides details on how to calculate quarterly instalment payments (QIPs) for large and very large companies.The instalment amounts are based on the estimated corporation tax liability of the company’s current accounting period. Therefore, this means that large and very large companies
RDEC ― large company R&D reliefSince 1 April 2016, or from 1 April 2013 by election, large company R&D relief is given through research and development expenditure credits (RDEC), which is a taxable credit payable to the company. As the credit is taxable, it is also sometimes called an above the
Companies sometimes provide directors, employees or shareholders with low interest (or interest-free) loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed in detail in