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I have owned a flat 30 years that has appreciated

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I have owned a flat for about 30 years that has appreciated significantly in value. I have been renting it out for about 20 years. I believe I can transfer ownership to my wife without incurring a CGT charge. If she then sells it, what would the cost basis be ? Would it be what I paid for it or the notional value when I transfer it to her ownership ?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You can transfer the property to your wife on a "no gain no loss" basis. If you do so, she will take the purchase price, the associated purchase costs and the costs of improvement if there have been any as her cost for Capital Gains Tax purposes. However, if the property was ever your main home, your wife will get no credit for that as you would because at the time that you transfer it to her, it will probably not be your main home for CGT purposes. That could cost you significantly in terms of lost main residence relief and letting relief. Take a look at CG64950 for confirmation of this. You might also refer to HS283 for information on main residence and letting relief. I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15762
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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