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In the following article references to husband and wife, spouses or married persons include references to civil partners with effect from 5 December 2005¹.

The commentary below considers the capital gains tax treatment that applies to married couples. For an overview of the taxation of capital gains generally, see C1.101.

A husband and wife are taxed independently on their respective chargeable gains. Accordingly:

1. Ìý

   •ÌýÌýÌýÌý each spouse is entitled to set the full annual exempt amount against their gains (see C1.106A) and the rate of capital gains tax is computed without reference to the other spouse's income (see C1.107)

2. Ìý

   •ÌýÌýÌýÌý losses made by one spouse cannot be used or transferred to the other spouse²

3. Ìý

   •ÌýÌýÌýÌý each spouse is responsible for making returns of their own gains, and for paying the tax due on those gains (see C1.109 and C1.110)

For the liability of individuals to capital gains tax, see C1.201. However, there a couple of areas that need to be considered in