Closer look... inter-spouse transfers

The reply by JHZ to the recent query French gift requires clarification.

It stated that a property that did not qualify for the main residence exemption could be gifted by a wife to her husband and then to their children without a capital gain arising.

If all parties are UK resident and domiciled this will not be the case. While a gift between spouses will generally not result in a capital gains tax liability because it takes place at no gain/no loss the donee ‘inherits’ the donor’s base cost so any gain crystallises on a subsequent disposal to someone other than a spouse e.g the couple’s children in French gift.

However while we are told that the French client is UK resident we are not told whether she is married and if so whether her husband is...