Capital Gains Tax allowance sharing for married couples

Question

A husband owns a flat (mortgaged). He is selling it after marrying earlier in the year. Some capital gains tax will be payable as he no longer lives there - the couple moved into a larger place together some years before getting married.

Can the couple use both spouses' capital gains tax allowances? Thank you.

Edit: As it is quite a small flat, there may be little need for the extra allowance, as it appears that because the husband used to live in the flat, until the government budget changes take effect in 2020, he will also be able to claim Letting Relief.

timday · Answer

My understanding (I'm no expert) is that he'd basically have to give his wife a share in the property before it's sold.  Then she's liable for any CGT on any gains on her share of the sale proceeds.  (No CGT arises from the transfer!)

There's some detail on how to achieve this here; it mentions "a declaration of trust which must be in a the form of a deed".  Note that the mortgage may be a complicating factor!

Capital Gains Tax allowance sharing for married couples

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