CGT again!

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    CGT again!

    Hoping someone can clarify a couple of things regarding CGT.

    I own a rental property 50/50 with my wife. We are thinking of selling and have to consider CGT. I have been searching on line today on this subject as it is a new area for me.

    There are two things I would like clarification on.

    1) Can we both use our CGT allowance? This may seem obvious, but I've not seen the question specifically covered anywhere, and the online calculators I've used provide no method for adding two allowances.

    2) I've read that the stamp duty we paid when we bought the property should also be included as a cost in the CGT calculation. Is this really correct?

    Many thanks.
    Gary.

    #2
    The capital gain is calculated from the sale proceeds less the acquisition cost ( including the conveyancing cost and sdlt ( stamp duty) but ignoring the mortgage expenses ) and the gain is divided 50/50 . Each person declares half the gain on his/her tax return and claims the capital gains allowance.

    Comment


      #3
      remember as well the potential sales costs when you dispose of it (estate agents + conveyancing) which can be deducted as well as any capital costs along the way or from pre-letting

      Just my personal view

      Comment


        #4
        As you probably know it's no longer sufficient to declare on your tax return and you will each have to make a declaration within 30 days of the gain.
        You can also deduct the cost of any improvements from the gain.

        Comment


          #5
          As all above, so
          1 Yes
          2 Yes

          If either of you ever lived in the property, there may be some additional allowance for that period.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            If you have ever lived there it can be quite a significant saving https://www.gov.uk/tax-sell-home/let-out-part-of-home

            Comment


              #7
              Unless I am mistaken, if you sell a property which is in say the husbands sole name you cant after the sale ask for the wife's personal CGT allowance to be used, you have to arrange it before the sale, perhaps have the contract in both names.

              Comment


                #8
                Originally posted by Another Fine Mess View Post
                Unless I am mistaken, if you sell a property which is in say the husbands sole name you cant after the sale ask for the wife's personal CGT allowance to be used, you have to arrange it before the sale, perhaps have the contract in both names.
                True, but that's not the situation here.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment

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