A client (Husband and Wife own jointly) have transferred an old house to their daughter Market Value 100k Capital Gains tax loss 150K. The daughter is knocking down the old house and building an new house on the site. The daughter’s mother also has some land and wishes to gift this to her daughter with a potential Capital Gain of 100k – retirement relief doesn’t apply.
Q. 1 Can the mother use her connected party loss of circa 75k on the transfer of her share in old house to daughter and reduce the gain on the gift of the land to her daughter against the 100k.
Q.2 Could the husband’s connected party loss of circa 75k be also set off against balance of gain on wife’s gift of lands to her daughter.