Using spouse's CGT allowance

[johnnyBv8]

I have a lock-up that I'm planning to sell, and will be liable for CGT on around £35k profit. It hasn't cost me much in terms of maintenance over the 7 or so years I've owned it (I had a new door made, but don't have receipts), so not much to offset. However, I recently got married - to utilise both CGT allowances do I need to get a solicitor to arrange transfer half of the asset to my wife, or can we just 'use' her allowance?

Thanks in advance for any advice.

[The Leaper]

I wanted to sell a block of shares recently, so to get the double CGT allowance I transferred some of the shares to the wife before sale. It was not possible to assume that I could benefit from her CGT allowance so I needed to make a formal transfer all legally obvious. Afterwards she and I sold our shares in separate transactions.

In your case, I am sure that you will have to transfer a portion of the asset to your wife formally so that she is clearly the owner, and do so before sale. This means that when it comes to the sale there will be two distinct transactions and each of you will have your own CGT allowance to apply.

R.

[Eric Mc]

Yes - the transfer has to be formal with proper legal process followed.

[johnnyBv8]

Great, thanks