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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I bought a cottage for £158k (not my principle residence).

Resolved Question:

I bought a cottage for £158k (not my principle residence). I now wish to sell a half share to my brother for £150k . The property has been valued at £300k. I have spent £70k on renovation. Do I set half the cost ie: £79k plus £35k against the gain.
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

You are selling half share to your brother.
You are correct in that your cost would be (79+35) = £114k and the gain on 50% transfer would be (150-114) = £36k.

You will claim gains annual exemption of £10,900 and the balance would be subject to CGT at 18%, 28% or a combination of both depending on your total income.


I hope this is helpful and answers your question.


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