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 disposals
**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
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.