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I purchased a house in January 1994 for £30,000 and lived in

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I purchased a house in January 1994 for £30,000 and lived in it until April 1999. I then sold it in July 2014 for £75,000, although the net proceeds were £72,000 after deducting costs. The property was owned by me but partially gifted to my wife. Do I have any Capital Gains liability?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
Yes there will be a capital gains liability, as you have sold a property that was not sold, until more than 18 months after moving out from it.
You advise that the property was owned by you, but partially gifted to your wife, could you expand on this point, as unless the deeds were in both your names, or the mortgage (if any) was in joint names, then this property is treated as yours. So any rental income and capital gains falls to being solely your liability.
But if the property was let out, and all income declared to HMRC by you, then you will have private residence relief for the time you lived there (and up to the last 18 months of ownership) and/or private lettings relief if the property was let out and rental income declared to HMRC.
Also the first £11,000 of any gain is then exempt, as this is your annual exemption allowance.
Then tax is considered on any remaining gain.
Let me know if you wish me to expand on any of the information provided.
Thanks
Sam
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Category: Tax
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Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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