Separating-CGT on Rental Property??

My wife and I are currently separating. We have a family home and a 2nd rental property. The rental property was bought by me before our marriage and is in my name.
It currently has a mortgage outstanding of €60,000. Its value is €220,000.
Its is agreed between us that I stay in the family home and the rental property is sold with the proceeds going to her. From research i think that an asset can be transferred from one spouse to another in the year of separation without having to pay CGT. Does this mean that when the house is sold and the mortgage is paid off I can give whatever money left over to my wife without having to pay Capital Gains Tax. Whenever I try to look it up i find it very confusing!! Any advice appreciated

Tax on gain on disposing an asset = CGT

Tax on transferring assets = CAT.

Two different taxes.


There is no CAT between spouses.

Step 1 - You sell a property that you own in your own name.
Step 2 - If the net sales proceeds after legal and selling fees exceed the cost of the property, you will pay CGT on the difference at 33%.
Step 3 - You give cash to your wife - no tax implications for you or for her on the gift of cash.

Is there any advantage in gifting the house to her and letting her sell it?
I don't think so. The cost to her for CGT purposes would be the price you paid for it, I think. If I am wrong on this, it would be a disposal by you at today's value and you would still pay CGT.

Brendan

@delta1980

Any taxable gain is reduced pro rata for the period in which you occupied the houses as your primary principal residence.

Have a look at example 2 here.