A few Capital Gains Tax Questions

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SidTheDweeb

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Hello,

I just want to check to make sure I have the right handle on 2 scenarios...

1.
Husband gifts a non-wasting chattel to his wife in yr2000. It cost 10k in yr1995, and the market value in yr2000 is 15k.
On transfer there is no capital gains tax liable?
But if it were to be sold this year, is it correct that the capital gains tax liable by the wife would be

Consideration (let's say 20k) - 10k * indexation as at yr2000 and not yr1995?

2.
Father sells house (not PPR) to daughter this year, for 10k. Market value is 200k. He bought house as investment in 1990 for 20k.
He would be liable for CGT this year?
And he liability would be
Market Value - 20k * indexation 1990

???

Any help great
 
SidTheDweeb said:
Hello,

I just want to check to make sure I have the right handle on 2 scenarios...

1.
Husband gifts a non-wasting chattel to his wife in yr2000. It cost 10k in yr1995, and the market value in yr2000 is 15k.
On transfer there is no capital gains tax liable?
But if it were to be sold this year, is it correct that the capital gains tax liable by the wife would be

Consideration (let's say 20k) - 10k * indexation as at yr2000 and not yr1995?

2.
Father sells house (not PPR) to daughter this year, for 10k. Market value is 200k. He bought house as investment in 1990 for 20k.
He would be liable for CGT this year?
And he liability would be
Market Value - 20k * indexation 1990

???

Any help great
Click to expand...

Question 1
Cost 10K. Index from 1995

Question 2
Correct

The fact you're using a phrase like non wasting chattel makes me think you're a student. Good luck with the exams.
 
Sure am... :)

You sure about the 1st one tho... the reason I ask is because I have a solution to a similar question and I thought the solution was odd (what I posted)... I assumed it would be as you say. It could easily be an error in the solution, I just want to confirm. And also there is definetely is no liability until disposal (ie. no liability on transfer from husband to wife, and vice versa)
 
The wife would take over the asset without any CGT charge and would be deemed to have acquired at the same time as the husband did originally. See page 17.

transfers between spouses are not deemed to be disposals for CGT purposes hence no disposal as such takes place in 2000 so indexation would apply from the original date i.e.1995.
 
SidTheDweeb said:
Sure am... :)
And also there is definetely is no liability until disposal (ie. no liability on transfer from husband to wife, and vice versa)
Click to expand...

Husband and wife have to be living together for the disposal to made at a deemed no gain/no loss
if you have the TCA 1997 its in section 1028(5)
It is a disposal - but s1028 deems it to be made at a consideration that would generate neither a gain nor a loss i.e disposed at cost, therefore the cost for the spouse receiving the asset is the cost for the disponer

However in the case of an informal seperation and assets transferred cgt may arise however if assets transferred when not living together but under a formal deed of seperation/divorce again no gain no loss situation - section 1030(2) and section 1031(2)

good luck with the exams, ACA/ACCA or college?
 
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