An outright gift of an asset and the whole of the income arising from it by one spouse or civil partner to their spouse or civil partner (see E5.101) is not treated as a settlement by the donor1 (see I5.1111). The income arising from the asset is therefore taxed on the recipient of the gift and not on the donor.
A gift is not an outright gift for this purpose if2:
- Ìý
•ÌýÌýÌýÌý it is subject to any conditions, or
- Ìý
•ÌýÌýÌýÌý the property gifted or any related property (eg the property is sold and other property bought with the proceeds) is, or may in any circumstances be, returned to or applied for the benefit of the donor
It is understood3 that this rule was not intended to exclude a gift from being an outright gift merely because the donee voluntarily returns
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Web page updated on 17 Mar 2025 17:19