Sale of property

If you've sold a property and transferred a portion of the proceeds to your wife, it's important to understand the tax implications. Capital gains tax on the sale is typically paid by the seller. However, the income generated from the transferred amount may be 'clubbed' with your income and taxed in your hands, even if your wife is a salaried employee. This means the £700,000 is considered your income, and any earnings from it will be added to your taxable income annually.