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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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I purchased a holiday property in 1984 on a joint ownership

Customer Question

Hi, I purchased a holiday property in 1984 on a joint ownership basis with a friend,this was a leasehold property at the time.Twelve Months later we jointly purchased the freehold from the owner of the site as did all 16 owners on the site.The Chalet which my friend and I purchased had an annexe which had been built on by the previous owner and this was a self contained unit with own facilities,it was built for the owners father to live in.We obtained planning consent to extend the original property and create room for wc/and showers in both sides in 1985.Since that time the local council has taken them as two separate properties and we have been paying our Rates separately since then,me for the original Chalet and my friend for the annexe.We both now whish to formalize the Two split properties and create separate Deeds for each.Will there be capital Gains Tax to pay if we do this.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. As you are not disposing of the property then Capital Gains Tax (CGT) will not apply. You have always owned it and will still own it irrespective of the way that the deeds have been drawn up. I do not think that you need to worry over this, I do hope my reply has set your mind at rest.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.