CGT limits

Author
Discussion

leosayer

Original Poster:

7,325 posts

246 months

Thursday 22nd March 2007
quotequote all
In the budget GB announced that the CGT threshold now kicks in at £9,200 for an individual and £18,400 for a married couple.

Does this mean that I can use my wife’s allowance without having to transfer my shares into her name to sell them?

Eric Mc

122,324 posts

267 months

Thursday 22nd March 2007
quotequote all
No.

The £9,200 relates to each individual. If they are married (or in a formal same sex relationship), assets can be transferred from one to the other without any tax implications. Once a transfer has been made, both parties can sell their share of the asset and make use of their £9,200 CGT allowance.

This "tax break" cannot be utilised by couples who merely cohabit.


Edited by Eric Mc on Thursday 22 March 10:42

leosayer

Original Poster:

7,325 posts

246 months

Thursday 22nd March 2007
quotequote all
Thanks Eric

Eric Mc

122,324 posts

267 months

Saturday 24th March 2007
quotequote all
I was wrong

With effect from 6 April 2007, husbands and wives will be able to transfer unused elements of their CGT allowance to each other. This is the first time this has been possible.

Red V8

873 posts

229 months

Saturday 24th March 2007
quotequote all
Hi Eric, just for clarity, does this mean that if I excercise £18k of share options that are held in my name only, I can cash them in free of CGT so long as my wife doesn't sell any shares in the same year?

Eric Mc

122,324 posts

267 months

Sunday 25th March 2007
quotequote all
That seems to be the case. However, I only discovered this new treatment yesterday. I would do a bit of reserch first before making any decisions.

Like all of Gordon Brown's budgets, the true details are rarely mentioned in the actual speech itself and are hidden in the vast Budget Briefing Document handed out immediately after the speech. From past experience, it takes about a week for the experts to get to the bottom of all the provisions of the new legislation.

Tiggsy

10,261 posts

254 months

Sunday 25th March 2007
quotequote all
Eric....you sure? The Budget Report and supplementary documents just seems to echo what he said in his speech..."£18,400 for a married couple" which is just spin on the current system.

To allow Mr Smith to make an £18k gain but then (post gain) use his wife's allowance would be huge news.

Eric Mc

122,324 posts

267 months

Sunday 25th March 2007
quotequote all
No I'm not sure.

However, a comment in yesterday's "Telegraph" Budget Report states that the allowance is now transferrable - which it never was before. No doubt all will be made clear in time.

I truly HATE Brown and his methodology. He seems to deliberately set out to cause confusion with his legislation - which to me smacks of a proneness to duplicity and obfuscation.

Not an atribute that is appropriate for a person in such an important position. The man is extemely worrying to me.

Tiggsy

10,261 posts

254 months

Sunday 25th March 2007
quotequote all
That sounds like some muppet at the paper not reading the report and getting confused over the speech...last year was appalling with the tax on trusts where the papers just printed complete tosh for the following 6 moths relying on the old "ohhh, its so confusing" as an excuse for their stupidity and lack of research. For anyone in that field it was business as usual with days of the budget despite the papers (Telegraph in particular) saying dont do ANYTHING with a trust until we know more. Quite why anyone should care what the papers do or dont know was something i was never clear on!

Tiggsy

10,261 posts

254 months

Sunday 25th March 2007
quotequote all
Eric Mc said:
He seems to deliberately set out to cause confusion with his legislation - which to me smacks of a proneness to duplicity and obfuscation.

.


the information on small business corp tax is a good example - if you read the section on their belief that all small firms are ltd to dodge NI then read the section on how they want to encourage school leavers t become entrepreneurs and run their own business it would seem the two bits have been written by people with COMPLETEY different attitudes!

Eric Mc

122,324 posts

267 months

Sunday 25th March 2007
quotequote all
No doubt all will be clarified in due course.

Gordon's motto seems to be "confuse and confound".

Piglet

6,250 posts

257 months

Monday 26th March 2007
quotequote all
Bugger - this is quite key for me. Given the timescales I think I'll have to go ahead and transfer the asset anyway...can't afford to take the risk that two faced Gordie might have said something and meant something else.

Eric Mc

122,324 posts

267 months

Monday 26th March 2007
quotequote all
Just confirmed by Mike Warburton of Grant Thornton on Radio 4's "Moneybox Live" programme:

the annual Personal CGT Allowance of £9,200 WILL NOT be transferrable between husband's and wives.
In other words, the situation remains as it currently stands - and confirms my original post on this subject.

Piglet

6,250 posts

257 months

Tuesday 27th March 2007
quotequote all
Thanks for the confirmation Eric.

leosayer

Original Poster:

7,325 posts

246 months

Tuesday 27th March 2007
quotequote all
Eric Mc said:
He seems to deliberately set out to cause confusion with his legislation - which to me smacks of a proneness to duplicity and obfuscation.

Not an atribute that is appropriate for a person in such an important position.

yes

Tiggsy

10,261 posts

254 months

Tuesday 27th March 2007
quotequote all
i suppose to be fair - it was never said it would be transferable, just the papers talking nonsense as usual.

leosayer

Original Poster:

7,325 posts

246 months

Tuesday 27th March 2007
quotequote all
All he had to say was 'the CGT allowance is raised to £9,200 a year'.

The arrangements for married couple's haven't changed so there was no need for him to bring them into the speech.