I own ten residential investment properties and in September 2021, I transferred the ownership of three properties to my husband. I understand that no capital gain arises on the transfer of properties between husband and wife. My accountant is preparing my 2022 tax return. Should I have notified HMRC within 60 days or not? What is the correct way of dealing with these transfers? Will I be charged penalties if we declare to HMRC now?
Arthur Weller replies:
If there is no capital gains tax liability on the transfer, as in the case of a husband and wife transfer, then there is no 60 day reporting requirement. If you look carefully on CG10340 you can see that these transfers also do not need to be put on the capital gains tax supplementary pages of the self assessment return. So, you do not need to concern yourself with penalties.