UK-Wide · CGT No-Gain No-Loss · No SDLT Between Spouses · Declaration of Trust + Form 17 · Section 24 Income Shifting

Gifting Property to Spouse — CGT, SDLT, Income Splitting and Form 17 Guide

Gifting property to spouse or civil partner landlord guide: CGT no-gain no-loss rule (TCGA 1992 s.58) — no CGT on transfer; recipient spouse takes donor's original base cost; no SDLT between spouses (FA 2003 s.54; LBTT and LTT equivalents in Scotland and Wales); Declaration of Trust + HMRC Form 17 filed within 60 days overrides the 50/50 income default (ITTOIA 2005 s.837) to split income on actual beneficial ownership proportions; Section 24 and income shifting to basic-rate spouse saves up to 20% income tax on shifted share; Section 624 ITTOIA settlement provisions do NOT apply to genuine outright gifts; IHT spousal exemption (IHTA 1984 s.18) — all transfers between spouses fully exempt. UK-wide.

13 min readUpdated 7 June 2026Last reviewed: 17 May 2026gifting property to spouseCGT no gain no loss TCGA s58declaration of trust form 17SDLT spousal exemption

CGT no-gain no-loss and SDLT exemption on spousal transfers

TCGA 1992 s.58: transfers between spouses/civil partners living together are no-gain no-loss for CGT — recipient spouse takes asset at donor's original base cost; no CGT arises on the transfer itself. FA 2003 s.54 and Sch.3 para 3A: transfers between spouses/civil partners are fully exempt from SDLT in England even if consideration passes (Scotland: LBTT exemption; Wales: LTT exemption).

CGT no-gain no-loss: recipient spouse inherits donor's original base cost — gain deferred until recipient spouse's future sale
If recipient spouse is lower-rate taxpayer, eventual CGT rate on sale may be lower (18% vs 24% for residential property in 2024/25)
No SDLT on spousal transfer: exemption applies even where cash or mortgage assumption passes as consideration
Mortgagee consent: check BTL mortgage terms — some lenders require notification or consent on beneficial ownership changes even without legal title transfer

Declaration of Trust, Form 17, and Section 624 anti-avoidance

ITTOIA 2005 s.837: HMRC default taxes joint property income 50/50 regardless of actual beneficial ownership. To override: (1) execute Declaration of Trust specifying actual beneficial ownership; (2) submit HMRC Form 17 (signed by both spouses) within 60 days of the Declaration of Trust. Income then taxed on actual proportions. Section 624 ITTOIA settlement provisions do NOT apply to genuine outright gifts between spouses where recipient has full beneficial ownership with no conditions or retained benefit.

Form 17 election: both spouses must sign and submit to HMRC within 60 days of Declaration of Trust — late submission has no effect
Settlement provisions (s.624 ITTOIA): do NOT catch genuine outright gifts between spouses; HMRC guidance BIM20205 confirms this
IHT spousal exemption (IHTA 1984 s.18): all lifetime and death transfers between UK-domiciled spouses/civil partners are fully IHT exempt
Section 24 interaction: shifting income to basic-rate spouse reduces effective tax on leveraged rental portfolio; both spouses receive the 20% finance cost credit on their proportionate share

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