Can you circumvent B&B rule by gifting to spouse?

[jaminko]

I believe there's no limit on gifting money or assets to one's spouse.

If I had an asset that had depreciated since I bought it and my spouse had an asset that had appreciated, could I gift them my asset so they could sell them both and offset the CG loss against the gain, and then they gift me some money so I can buy the same asset without having to wait 30 days?

 

[carrico]

@jaminko If you rebuy the same asset within 30 days of the disposal, whether that's selling yourself or gifting to your spouse, you'll be caught by the bed and breakfast rules.

If you have unused allowance then it would be better for them to transfer shares to you to sell instead and you send the money back to them.

To bed+spouse, you usually have one spouse selling and the other buy, before transferring the shares back at a later date.

 

[jaminko]

@carrico OK, that makes sense as it's still a disposal.

Yeah, I guess my spouse could give me their profitable shares to sell and I could offset their gains against my losses for tax purposes and gift them money, and they could use it to repurchase my shares and transfer them to me after 30 days.

 

[jmb1031]

@jaminko Capital gains tax is due at the point of disposal of a chargeable asset, whether that disposal is a sale or a gift.

 

[organus]

@jmb1031 There is a no gain or loss rule when disposing to your spouse. When the spouse disposes of it, the original price paid will be used. But a gift to a spouse wouldnt incur CGT.