Sorry, yet another CG question

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    Sorry, yet another CG question

    House purchased in my name: 2003
    Transferred into joint name with spouse: 2006
    Moved out: 2015 (became second home)
    Sold: Dec 2020

    So am I right in thinking half the gain from 2003 to 2006 counts as a disposal when gifted, and CG is due, but postponed until the sale, and in proportion to the occupation period with the usual 9 months grace and so on? I'm trying - and failing - to get my head round what portion each claims of the sale costs, and how the improvements are apportioned.
    Also, I'm not going to have time to get a survey for the value in 2006 before my deadline because I have to wait 2 weeks for someone to become available. Is it ok to overpay, if so how long would I have to claim back the over-payment?

    #2
    In 2006, you transferred 50% of house to wife and she takes on 50% of your 2003 acquisition cost. ( no cgt payable for transfers between spouses but recipient spouse takes on share at original cost .) .

    So property was owned for 18 years and apportioned as "main residence+ 9 Months " for 14 years and "second home" for 4 years.

    Comment


      #3
      OK, thanks that makes it much simpler if it works like that.

      Comment


        #4
        I have another question. I'm looking at this page:
        https://www.tax.service.gov.uk/capit...ax-uk-property

        It says to get this information:
        • date you got the property
        • date you exchanged contracts when you were selling or disposing of the property
        The second bullet is nice and clear, I understand that 100%. What does it mean to 'get' the property? Do they mean completion? Or exchange?

        I don't have anything at all about the exchange date, no documentary proof. The date was left a bit vague and confirmed by phone. Should I seek to get something in writing from my conveyancer (they're not very forthcoming), or just leave it for any future HMRC queries? It was about 2 weeks prior to completion, so nothing exceptional.

        I'm just trying to figure out my selling costs, and I believe I can include travel to the property for viewings. Having never claimed mileage expenses before, what 'proof' do I need for that? I believe I put the times/dates and start/end mileage in my mobile phone, but is that good enough for record keeping?

        Comment


          #5
          You need to declare CGT and pay with 30 days of sale. Click ticking...

          Guessing from your wording you know this but....
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment


            #6
            Actually I plan to delay the return until I find out about these ticking clicks of which you speak. They sound... intriguing.

            Comment


              #7
              By the time PRR had been taken into account the mileage made hardly any difference so I just did the return and left it out.

              Comment


                #8
                The "date you got the property" will be in 2003 and you can use registration date shown on the property title.

                You need the date in 2003 to apportion the total capital gain between period used as "main residence" and "second home".

                Comment

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