CAT/CGT on gifted site

David

Registered User
Messages
21
Hi all,

I'm struggling to find a straight answer on this one - I was gifted a site by my father (transfer finalised April 2018). I have a built a family home and I am now mortgaging (jointly with my wife) the property to clear a personal loan.

At the time of the initial site transfer I paid stamp duty on the property, but now that my wife is being placed on the title what are the tax implications, if any?

Any advice welcomed, thanks
 

Protocol

Frequent Poster
Messages
2,944
Transfer of half the asset to your wife should not have any CAT implications, as spouses can transfers assets to each other free of CAT.
 

David

Registered User
Messages
21
Thanks, I appreciate the advice but I'm wondering is there any time frame that the site would need to remain solely in my name before transferring? Obviously, I avoided gift tax as the site was transferred to me by my father (group a threshold etc.). Would a gift tax apply to my wife?
 

Abren03

Registered User
Messages
13
If you disposed of site without occupying PPR for at least 3 years, then the capital gain that your father would have paid, would become liable by you. However, this gain will not accrue where the child transfers an interest in the site to his or her spouse.

As mentioned by protocol, Gift tax will not apply to your wife (gift tax is exempt between spouses / civil partners)
 

Abren03

Registered User
Messages
13
To add, there should be no stamp duty on transferring half(or full) site to wife - Transfers between spouses also exempt.
 
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