Any CGT planning points for married/separated couples

[Brendan Burgess]

A friend of mine is separating from his wife and is considering disposing of an investment property to fund the settlement. He asked me if he could sign it over to his wife and then could she sell it with a reduced CGT?

My advice was that there is no tax advantage or disadvantage in signing over a property to one's spouse. She will not pay any CGT or CAT or stamp duty on the transaction. When she sells it, she will have the same base cost as when he acquired it.

Is this correct?

 

[capall]

Yeah the same except she can use her personal allowance

 

[John Conlon]

The CGT exemption applies to husband and wife living together. Once separated the exemption is gone. The exemption will also apply if the transfer is done as part of a formal deed of separation.
There is also the issue of the value of the property. Can it fund the settlement.
it might be better to transfer for her to sell when values are higher.