How to Gift Crypto Assets to Spouse

I read a lot about how to take advantage of both allowances and potential 10% tax rates by gifting crypto between spouses but I am unsure how that works.Lots of people talk about "gifting" but none explain what that entails when it applies to spouses. For context, we purchased crypto some time ago using joint funds and regard what we have, as we do everything else we have in our lives, as jointly held. We have never needed to declare any CGT before now. However, the crypto exchange account we use is registered in my name. So I have two questions: 1) Does the fact the exchange is in my name mean anything that has passed through it (into cold wallets) will be classed as mine alone and if not then what would be the baseline situation? 2) If that was the case, how would I go about "gifting" some of it to my wife given the status quo? Would we need to open a second exchange account (and potentially a new set of cold wallets), in her name, and transfer some assets across to that for disposal to show they were regarded as attributable to her? Really would appreciate some advice here as this is the one aspect of tax and crypto I am struggling to understand.

+1 I have also used 50/50 funding to buy crypto. I have the assets held on exchange in my name. Would also like to understand what documentation is required to prove ownership transfer prior to sale. Or whether any physical movement of asset to spouse account has to occur prior to sell. Many thanks

Hi Jim Fish,
With the account being in your name, you are the beneficiary of any capital gains tax on the disposal of assets within that account.
There is no Capital Gains Tax on the transfer of assets between spouses and civil partners, so you could transfer the asset to your wife prior to the disposal.
How you go about doing that is not something we can help with.
You could check withe the account provider.
Thank you. 

Thank you, that is at least some help (I know what I cannot do, even if I am still not entirely sure what I should). I will get her to open an account in her name, I think, to make evidencing the transfer clear.

Hi Cncvonn,
You would need to provide a declaration of trust that is signed and witnessed.
This would then need to be sent to:
HMRC, PAYE & Self Assessment BX9 1AS.
Thank you. 

 

Hi - reading up on how to transfer my crypto assets to my wife on this forum and I am not clear on the document to fill out - while you mention a "declaration of trust", another HMRC Admin said a "deed of trust" in a different feed treating the same topic. Could you please confirm which one should I use, as from reading up on these documents - they are 2 different declarations, with different purposes. Thank you

Adding to this thread, I was wondering if anyone had any feedback on this example. All figures are made up. 1 BTC purchased with GBP on 01/10/24 at £40,000 1 BTC sold to USDT on 01/12/24 at £43,000 equivalent price. All USDT sent to wife's wallet on 02/12/24. Would this be considered a taxable event where I'd of made a £3,000 gain and my wife's non gain/non loss price is £43,000 so long as she holds for 30 days? Or would the price pass on to my wife at £40,000 as I am gifting all the USDT to her? This scenario is to determine if it matters if the coin is sold before or after the transfer. Thanks in advance

Hi Ev Spi,
•    Trust Deeds are general legal documents that set out the terms of a trust.
•    Declaration of Trust is a more precise type of Trust Deed, documenting how parties hold the equitable shares in a particular asset on trust, such as property
•    A declaration of trust goes beyond what is said in a title deed on the land registry and can be used to determine the true ownership of a house
•    A deed of trust is a legally binding document that contains a declaration of trust, but also includes other statements describing how the assets in trust should be dealt with
It is therefore a declaration of trust that is required as it is an asset that you are gifting.
Thank you.

"Adding to this thread, I was wondering if anyone had any feedback on this example. All figures are made up. 1 BTC purchased with GBP on 01/10/24 at £40,000 1 BTC sold to USDT on 01/12/24 at £43,000 equivalent price. All USDT sent to wife's wallet on 02/12/24." All transfers to a legal spouse are not taxable events, so no tax is due. However, in your example, the tax liability for the gain passes to your wife. If she sells, her CGT is based on your initial purchase price. If it is still only £3,000 gain no tax is due.

Hi c1989,
We cannot comment on any form of calculation or example or scenario, whether fact or fiction. We can only point you the direction of the guidance, so that you can review the guidance and to allow you to make an informed decision. You can see guidance here:
CRYPTO22000 - Cryptoassets for individuals: Capital Gains Tax
Thanks you.

Hi Mark Kneen,
We cannot comment on scenarios or examples, we can only provide general information and guidance in this forum. For an answer to a detailed question of this nature, you would need to seek professional advice.
Thank you.

Hi I would like to transfer crypto to my wife as she has a capital loss which could be used against a crypto gain, however, I want to make sure I complete the correct and legal documentation before transferring the crypto, therefore, may I ask for; A link to the necessary form I should complete before/when transferring crypto to my wife. I have read from above about the Deed of Trust and or the Declaration of Trust, but I cannot find any such form/document/template. In conclusion, all I need is guidance on the legal documentation HMRC requires to record the transfer of crypto to a spouse. Many thanks in advance for your help.

Hi,
There are no tax implication from the transfer of assets between a husband and wife or civil partners. When your wife acquires the assets from you, she acquires them at same the value you acquired them for. This is the acquisition value used when working out the gain.
Thank you.