Chapter 16 - Connected Persons and Inter-Spouse Transfers

Question 1

Connected Persons

Answer 1

A connected person for CGT purposes is any of:

• spouse
• relatives (ancestors, descendants, brothers and sisters)
• relatives of your spouse
• spouses of your relatives
• a company you control
• the trustees of a trust you set up
• your fellow business partners and their relatives

Question 2

Connected Persons

Answer 2

The proceeds used for calculating gains or losses on disposals to connected persons must be at market value. The actual proceeds are ignored. Except for spouses which is done at no loss, no gain

Question 3

No Gain, No Loss

Answer 3

When an asset is transferred between spouses, it is judged that the donee spouse has bought the asset from the donor/their spouse