Is CGT allowance transferable between husband and wife?

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    Is CGT allowance transferable between husband and wife?

    We have been offered a good price to sell one of our properties.

    The figures are as follows:

    Selling price £110k
    Purchase price £88k

    I know there will also be additional costs such as mortgage arrangement fees and buying/selling fees.

    My wife and myself own the property as tenants in common, with my wife owning 99% and me the remaining 1%.

    My solicitor has informed me that my wife is liable for 99% of the gain, whereas I am only liable for 1% of the gain.

    My question is this - can a CGT allowance be transferred between husband and wife to off set any CGT tax liability?

    Thanks in advance

    John

    #2
    I am not any sort of expert, but I was advised that a spouse ONLY gains CGT allowances against a property where it has been their Principle Residence during their period of ownership.

    Comment


      #3
      geoffg.landlordzone,

      I think you may be confusing PPR relief with the Annual CGT Exemption (£10,900 for 2013-14)? All individuals receive the latter

      Comment


        #4
        JDO,

        The short answer is No.

        But there is nothing to prevent a new DoT being executed to increase your share to the optimum figure. This needs to be done before Exchange of Contracts.

        Comment

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        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Hi Andrew
          First of all I've got an initial appointment to speak to an accountant on Friday!

          Can I just check where you write ' ...at death 1/6th of the value of the whole would have been deemed to pass to you for CGT purposes as the survivors would share the whole'.

          Does...
          08-12-2021, 18:02 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by jpkeates
          Even if probate wasn't mandatory, it would probably have been useful.
          08-12-2021, 13:44 PM
        • Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

          1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
          06-12-2021, 13:51 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
          Yes this would be the case if it was jointly owned (not as tenants in common). The situation would be that at death 1/6th of the value of the whole would have been deemed to pass to you (for CGT purposes), as the survivors would share the whole.

          So for the 3 periods you would be taken...
          08-12-2021, 12:51 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          jpkeates
          There was no estate as such, property jointly owned - they were both retired at time of purchase living on small pensions, hence I bought with them so they could stay in the home they'd been renting from council from early 1950s to March 1982 at time of purchase. And I paid for the initial...
          08-12-2021, 10:50 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by jpkeates
          I don't know the historic thresholds, but it's bizarre that there's no probate for both of your parents, their estate has to be tiny for that to be possible nowadays.
          It's probably too late for HMRC to do anything about that, but that process sets the values for CGT calculations later on, so it's...
          08-12-2021, 10:28 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Morning Andrew
          Thanks for your response early this morning and clarifying I have to make three separate calculations [the split wasn't clear on the CGT calculator].
          I understand the query on the value but this is an ex council house on a council estate [I feel I have to defend it here as...
          08-12-2021, 08:45 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
          As gordon indicates you need to consider it in three entirely separate parts, each have their own gain and calculation --

          The part YOU owned before Death 1
          The part YOU owned between Death 1 and Death 2
          The part you owned after Death 2

          Based on the values you give...
          08-12-2021, 05:52 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Thank you Gordon, didn't see your response this afternoon. I will look at this with fresh eyes tomorrow as it's late now.
          I've put some figures in my reply to a post just now but answers below to your questions.

          a] £80k Jan 2021 sale price.
          b] As property purchased before...
          08-12-2021, 00:55 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Andrew, apologies only just seen your post [was it awaiting approval did you say?] answers are:

          Purchased March 1982 as joint tenancy - so equal split of 33 1/3% each party
          Parent 2 died September 2007 - as joint tenancy I inherited their share - so at this point I own 100% of property...
          08-12-2021, 00:41 AM
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