Capital Gains Tax Between Spouses and Civil Partners 2026/27
In 2026/27 you pay no capital gains tax when you give or sell an asset to your husband, wife or civil partner while you live together. The transfer is "no gain, no loss": your spouse simply takes over your original cost.1 Moving an asset before it is sold lets a couple use two £3,000 allowances and two basic-rate bands, so more of the gain is taxed at 18% rather than 24%.
- Transfers between spouses and civil partners living together are no gain/no loss: no CGT now, and the receiving spouse inherits your base cost.3
- Each of you has your own £3,000 annual exempt amount and your own basic-rate band for the 18% rate.4
- The transfer has to happen before the sale. Moving the sale money into your spouse's account afterwards changes nothing for CGT.
- After separation, no gain/no loss transfers are still possible until the end of the third tax year after you stop living together, or at any time under a formal divorce agreement or court order.2
- Unmarried partners get none of this: a gift to a cohabiting partner is a disposal at market value.
How the no gain/no loss rule works
When one spouse or civil partner transfers an asset to the other, the law treats the price as whatever figure gives neither a gain nor a loss.3 Any money that actually changes hands is ignored. The practical result is that the receiving spouse is treated as having bought the asset for what you paid for it, plus your allowable costs.
So the tax is not cancelled, it moves. When your spouse later sells to someone outside the marriage, their gain is worked out from your original cost.1 What changes is whose allowance and tax band the gain falls into, and that is where the saving comes from.
The rule applies to any chargeable asset: shares and funds held outside an ISA, a buy-to-let or second home, cryptoassets, valuable possessions. It does not apply to trading stock, or where you are separated in the way described further down.
Why couples split a gain before selling
CGT is charged on individuals. Each spouse has:
- a £3,000 annual exempt amount for 2026/27, which cannot be transferred to the other spouse;4
- their own unused basic-rate band (up to £37,700 of taxable income and gains), inside which gains are taxed at 18% instead of 24%;
- their own capital losses, which can only be set against their own gains.
If one partner is a higher-rate taxpayer and the other earns less, moving all or part of the asset to the lower earner before the sale can cut the bill noticeably. If one partner has capital losses brought forward, moving an asset that is standing at a gain to them lets those losses be used.
Worked example: shares held by a higher-rate taxpayer
Sarah earns £70,000, so she has no basic-rate band left. Her husband Tom earns £20,000, leaving him £30,270 of basic-rate band (£37,700 band minus £7,430 of taxable income). Sarah owns shares bought for £20,000 that are now worth £60,000, a gain of £40,000. Neither has made other gains this year.
| A. Sarah sells everything | |
| Gain £40,000 less £3,000 allowance | £37,000 |
| CGT at 24% | £8,880.00 |
| B. Sarah gives Tom half first, each sells half | |
| Sarah: £20,000 less £3,000 = £17,000 at 24% | £4,080.00 |
| Tom: £20,000 less £3,000 = £17,000 at 18% | £3,060.00 |
| Combined CGT | £7,140.00 |
| C. Sarah gives Tom everything, Tom sells | |
| Tom: £40,000 less £3,000 = £37,000 | |
| First £30,270 at 18% | £5,448.60 |
| Remaining £6,730 at 24% | £1,615.20 |
| CGT | £7,063.80 |
Option B saves £1,740 and option C saves £1,816.20 against option A. Tom's base cost is Sarah's original £20,000 (or his share of it) in both cases.
Option C saves slightly more but means Tom owns all the proceeds. A gift between spouses has to be a real, outright gift. If the arrangement is that the money goes straight back to Sarah, HMRC can argue that Tom never really owned the shares.
Timing: the transfer must come before the sale
CGT is charged on whoever owns the asset when it is disposed of. For shares that is the trade date; for property it is the date contracts are exchanged, not completion. Once the sale has happened, the gain belongs to the seller.
That answers a common question: if the proceeds of a property sale are paid into your spouse's account, the money becomes theirs, but the gain is still yours, because you owned the property when it was sold. To share the gain, transfer the asset (or a share of it) first and keep a dated record, such as a stock transfer form, a broker's transfer confirmation, or a deed for land.
Jointly owned property
If you already own a property jointly, each of you pays CGT on your own share of the gain, uses your own £3,000 allowance and reports your own share. Couples who own as joint tenants are usually treated as owning 50:50. If your actual beneficial shares are different, HMRC looks at the evidence: who paid for the property, who receives the proceeds, and whether you have made a formal declaration on form 17.2
For a buy-to-let or second home, each owner whose share produces CGT must file their own 60-day UK property return and pay within 60 days of completion.
Two cautions for property. A married couple living together can only have one main residence between them for Private Residence Relief.2 And transferring a share of a mortgaged property can create a Stamp Duty Land Tax charge if the receiving spouse takes on part of the mortgage, so check this with your conveyancer before moving a share.
Separation and divorce
Since 6 April 2023, separating couples have more time. If you lived together at some point in a tax year, transfers between you stay no gain/no loss until the earlier of:2
- the end of the third tax year after the tax year in which you stopped living together, or
- the date the court grants the divorce, dissolution or annulment.
Transfers made under a formal divorce or separation agreement, or a court order, are no gain/no loss with no time limit. Outside those windows, a transfer to an ex-partner is treated as a disposal at market value. Our divorce and CGT guide covers the former family home in more detail.
What does not count as a spouse transfer
- Cohabiting partners who are not married or in a civil partnership: a gift is a disposal at market value, and CGT may be due. See CGT on gifts.
- Trading stock transferred into or out of a spouse's business.
- Assets passing on death: there is no CGT on death, and the surviving spouse takes the asset at its market value at the date of death, not the original cost.2
Run both of your figures
Use the calculator once with each partner's income and share of the gain, then add the two results together to compare options.
Open the CGT calculatorPlanning a sale as a couple? The CGT Survival Pack - £4.99 covers spouse transfers alongside the other legal ways to reduce the bill, and how to report on time.
Get the pack →Frequently asked questions
Do you pay capital gains tax when transferring assets to a spouse?
No. Gifts or sales between spouses and civil partners who live together are treated as no gain/no loss, so no CGT is due on the transfer. The receiving spouse takes over your original cost, and CGT is worked out from that cost when they eventually sell to someone else.
If sale proceeds are paid into my spouse's account, are they taxed on the gain?
No. CGT is charged on whoever owned the asset when it was sold (exchange of contracts for property, trade date for shares). Paying the proceeds to your spouse afterwards does not move the gain. To share the gain, transfer the asset or a share of it before the sale.
Can my spouse use my £3,000 CGT allowance?
No. The £3,000 annual exempt amount for 2026/27 belongs to each person and cannot be transferred. A couple can use both allowances by each owning part of the asset when it is sold.
What if one spouse is a basic-rate taxpayer and the other higher-rate?
Moving all or part of the asset to the lower earner before the sale lets more of the gain fall into their unused basic-rate band at 18% instead of 24%. The transfer must be a genuine outright gift.
How long after separating can we transfer assets without CGT?
Until the end of the third tax year after the tax year in which you stopped living together, or the date of the divorce or dissolution if earlier. Transfers under a formal divorce or separation agreement or a court order are no gain/no loss with no time limit.
Does the spouse exemption apply to unmarried partners?
No. Only married couples and civil partners get no gain/no loss treatment. A gift to a cohabiting partner is a disposal at market value and CGT may be due on any gain above your £3,000 allowance.
This page is general information, not tax or legal advice. Transfers of property, mortgaged assets and transfers during separation can have Stamp Duty, inheritance tax and family-law consequences, so take advice before acting on a large sale.
Sources & references
The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.
- Capital Gains Tax: gifts to your spouse or charity www.gov.uk/capital-gains-tax/gifts
- Capital Gains Tax, civil partners and spouses (Helpsheet HS281) www.gov.uk/government/publications/husband-and-wife-civil-partners-divorce-dissolution-and-separation-hs281-self-assessment-helpsheet
- HMRC Capital Gains Manual CG22200: transfers between spouses or civil partners www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg22200
- Capital Gains Tax: allowances (annual exempt amount) www.gov.uk/capital-gains-tax/allowances