CGT Impact Of Transferring The Property Title To A Spouse

Q&A Tax

Question :

Ms C wholly owns an investment property that she has never lived in.

She is now married and wants to add her partner onto the title.

Will this result in a CGT event or is there some kind of deferral exemption that can be applied until it
is disposed of? Is there may also be stamp duty implications?

 

Answer :

If the client transfers an interest in the property to her partner so that the partner is also a co-owner
of the property, the transfer of an interest in the property by the client would trigger CGT event A1.
There is no CGT rollover or deferral in this case.

Where no consideration is received on the transfer, the market value substitution rule will apply to
deem the client to have received market value consideration for CGT purposes.

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