Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Sorry my PC crashed on me and I must opt out.
Can you tell me when you got married (month and year) and when you became a joint owner (month and year) please.
Just to confirm, you never lived in the property. Do you have any idea as to the value of the property in September 2002?
Leave this with me while I do some calculations and draft my answer. It will take a while.
You sold the property in August 2015 for £119,500, £59,750 each. You can deduct the costs of purchase and sale (legal fees, stamp duty, survey fees, selling agent fees) in computing the gain.
Here are the figures you need:
Gain: £42,250 (£59,750 - £17,500 (50% of £35,000)
Total period of ownership to August 2015: 204 monthsPeriod of owner occupation: 22 monthsPeriod of letting: 175 monthsPeriod of vacancy: 7 months?Exempt gain: £8,284 (£42,250 / 204 months x 40 months (22 months + last 18 months of ownership)Letting period gain: £33,966 (£42,250 / 204 months x 164 months (175 months - 11 of last 18 months of ownership)Vacant period gain: £0 (£42,250 / 204 months x 0 months (7 months - 7 of last 18 months of ownership)Gross Non-Exempt Gain: £33,966Letting Relief: £8,284 (lesser of £40,000, £8,284 and £33,966)Annual CGT Exemption: £11,000Net Taxable Gain: £14,682CGT @ 18% or 28% or a combination of the two rates depending on the level of your income in 2015/16. Look here to see how to calculate your CGT rate or combination thereof.
Gain: £34,750 (£59,750 - £25,000 (50% of £50,000)
Gross Non-Exempt Gain: £34,750Annual CGT Exemption: £11,000Net Taxable Gain: £23,750CGT @ 18% or 28% or a combination of the two rates depending on the level of your income in 2015/16. Look here to see how to calculate your CGT rate or combination thereof.
I hope this helps but let me know if you have any further questions.
That's correct. You also weren't living there at the time of the transfer.
Many people make that mistake. Here is the law on it.