Capital Gains Tax
The question
To ask the Chancellor of the Exchequer, whether HMRC has provided (a) advice and (b) guidance on whether the payment of non-monetary donations crystallises capital gains tax liability for donors.
Answered by Dan Tomlinson
Capital gains tax is charged for a tax year on chargeable gains accruing in the year to a person on the disposal of assets.
Donating an asset is classed as being a disposal of it and a gain may accrue at that time.
Whether a capital gains tax liability arises depends on various factors, such as whether the donation is made to a spouse or civil partner, or to a charity; and whether losses in the tax year can be set against any chargeable gains.
Further information can be found at: www.gov.uk/capital-gains-tax/gifts and within HMRC’s Capital Gains Manual at: www.gov.uk/hmrc-internal-manuals/capital-gains-manual starting at page CG66450.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →