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JGM
JGM, Solicitor
Category: Property Law
Satisfied Customers: 11138
Experience:  30 years experience in property law.
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I want to split my half share of my late parents' house, with

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I want to split my half share of my late parents' house, with my husband, and understand that we would then be entitled to two lots of £11,100 allowance against CGT. I have some questions related to the sale of this house (which we have never lived in), as follows:
1 - My mother died nearly 12 years ago and the house has been let ever since. Are we still entitled to the CGT allowances after this time? 2 - What can we offset against the gain? (We think it may be in the region of £140,000, but only half would be ours. The other half goes to my sister and her husband.) Can we offset estate agents fees? Letting agents fees? And building insurance? And money spent on improvements? We are not sure. 3 - My husband's income is higher than mine. Bearing in mind that if we make £70,000 gain, £35,000 of this would be considered his, and the £35,000 mine. My husband has an income of £26,000 p.a.(company and state pensions). I think he would get about £16,000 charged at the 18% rate and £5,500 at the higher rate. My income is only £16,000 p.a. (company pension and state pension) and I think my CGT would all be charged at the 18% rate. 4 - My husband is concerned that his income tax might be affected, but I have said it won't. Does this sound correct? Thank you. Susan Reynolds
Submitted: 1 year ago.
Category: Property Law
Expert:  JGM replied 1 year ago.
1. Yes you can claim the allowance once in any tax year so you will get the full allowance in the year of sale assuming you made no other gains in this year.
2. All of the expenses you mention can be offset against the profit. The balance left is the net gain to which the allowances are applied.
3. Any overall gain above the Annual Exempt Amount and taking into account taxable income
£0 - £31,785 18%
Above £31,785. 28%
See https://www.gov.uk/capital-gains-tax/work-out-your-capital-gains-tax-rate
4. Your husbands income tax will not be affected but the amount of earned income will have an effect on the CGT rate payable.
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