CGT Loss Query
- Thread starter skippy
- Start date
The second spouse acquires the property at the value and date of acquisition of the first. So no relief here. Anyway there is specific anti avoidance for transactions involving connected persons.
A loss on a disposal to a connected person can only be offset against a gain to the sane person.
A loss on a disposal to a connected person can only be offset against a gain to the sane person.
I don't believe that capital gains/losses can be transferred between individuals - even spouses/civil partners. This comment also seems to rule out what you are talking about:
This is a different question to the first. You should check out S1028 TCA 1997 which deals with CGT and married couples. Subsection 3 deals with this point.
http://www.irishstatutebook.ie/1997/en/act/pub/0039/sec1028.html
Out of interest Subsection 5 deals with our original question.
mandelbrot
Registered User
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You may not realise it, but you've asked two very different questions there.
In the first case, there is no capital loss, as a transfer between spouses is not treated as an event giving rise to a capital gain / loss. The asset is deemed to have been acquired by the spouse receiving it, at it's original cost and at the date originally acquired by the first spouse (giving rise to a no gain / no loss situation). Therefore any gain or loss will only be realised when the asset is subsequently disposed of by the second spouse.
In answer to the second question, yes there is specific provision for the transfer of a CGT loss made by one spouse, to be relieved against the CGT gains of the other spouse (Section 1028(3) TCA 1997). The notes for guidance on the Revenue website summarise the provision as follows:
Losses
If in a year of assessment one spouse has allowable losses which he/she cannot utilise because of an insufficiency of chargeable gains (from which those allowable losses would be deductible under section 31), the balance of the losses after being set off against that spouse’s gains (if any) can be offset against the other spouse’s gains in the year of assessment. This treatment does not operate for a year of assessment where ei-ther spouse makes an application, that this subsection (subsection 3) does not apply, on or before 1 April of the following year.
But as I said above, the transfer between spouses doesn't give rise to a gain or a loss, so this provision doesn't come into play in the scenario you originally asked about.
Apologies for my misleading reply above so!
