Independent Taxation Manual - IN1192

Capital Gains Tax: Joint holding of assets

When a husband and wife own an asset jointly the beneficial ownership of the asset is a question of fact and you need to consider the evidence. If no factual evidence is available to determine each spouses beneficial interest in the asset CG22025 says that you should assess the spouse with legal title. If they have joint legal title you should assess each of them as holder of half interest in the asset.

Under Independent Taxation there are special rules for deciding
how much each spouse should be charged on income arising from jointly held property. These rules are explained at IN116. Briefly, they are that income arising from property held in the names of a husband and wife is treated as arising in equal shares unless they make a declaration of their actual interests under ICTA88/S282B. A declaration must set out their beneficial interests in the income to which the declaration relates and the property from which that income arises.

Where there has been disposal of asset in respect of which a valid ICTA88/S282B declaration has been made, you should normally apply the same split for CGT purposes.

Where a ICTA88/S282B declaration has not been made in respect of that asset, or there is otherwise a doubt about how its ownership should be split, you should follow the instructions at CG22020 - CG22025.