No gain/no loss spouse transfer (UK capital gains)
A qualifying transfer of an asset between spouses or civil partners is treated for capital gains purposes as made for consideration producing neither a gain nor a loss to the transferor. The transferee generally takes over the transferor’s allowable cost for a later disposal, subject to the detailed rules. The treatment depends on the relationship and circumstances: transfers while living together generally qualify, and additional rules can apply after separation or under a formal agreement.
Worked example
In 2025–26, spouses living together make a qualifying outright transfer of shares. The transferor’s allowable cost is £12,000 and market value is £20,000. Assuming no relevant adjustments, the transferor has no gain or loss; the recipient’s carried-over cost is £12,000 for a later calculation.
Common mistake
Treating a qualifying transfer as an immediate £8,000 gain at market value, or assuming every transfer after a relationship ends automatically qualifies.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |