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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4885
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If I give my wife an asset, and we have been separated in the

This answer was rated:

If I give my wife an asset, and we have been separated in the past, what evidence do I need to produce to show that we are living together again in order to avoid CGT? Do we have to be living together prior to the giving of the asset or is it correct that this can be demonstrated as anytime in the tax year?

Hello and welcome to the site. Thank you for your question.

You won't have to pay Capital Gains Tax when you give a gift to your husband, wife or civil partner - as long as both of the following apply:

- you've lived together for at least part of the tax year in which you made the gift

- the gift isn't 'trading stock' -trading goods bought for resale

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


 

Customer: replied 3 years ago.

Hi


I wrote to HMRC in 2008 to say we are separating...


 


So what proves we are once again living together?



Do I just have to write again to HMRC and/or change my address with them, or what about Council Tax, Electoral Roll etc?



And to be clear, can I make the gift now and then establish we are living together after the fact as long as it is before next April?



Thanks

Thank you for your reply..

You should write to HMRC and advise your new address and also make them aware you are living together with your wife, so that their records are updated.

Provided you can demonstrate that you have lived together for at least part of the tax year in which you make the gift, you will meet HMRC requirements for CGT purposes.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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