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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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My question is related to Capital Gains tax. In March 2008

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My question is related to Capital Gains tax. In March 2008 my partner, now my wife, helped our daughter to buy a property in London to use as her home. We agreed to share all costs 50/50 with her and held a Deed of Trust to protect our interest. The property was sold in November 2013, with a good increase in value. Can we assume the gain can be split 50/50 so we are only liable for our 50% and my daughter has no liability on her 50%? Can I in turn split the gain between my wife and myself? Is it possible to offset any of the CGT against earlier years and benefitting from the £10k allowance by resubmitting on line tax returns and using market valuations on earlier years?
My wife and I also purchased property in Spain May 2006 to use as a second home. We funded this partly with a mortgage, which is now paid off. The value has dropped significantly, can we in turn using a market value to offset any CGT on the tax year 2013/14?Or as above can we resubmit early tax returns?
Your CGT will be calculated on the difference in your cost and your sell price (less some expenses). You and your wife may split the gain between the 2 of you. Your daughter would be allowed to use the main home exception to CGT as this was her home.
You could not carry back the gain to any past year but your allowance for the year of sell would be used to lower your CGT.
Your second home in Spain would not assist you now with any CGT on the proeprty sold even if it has decreased in value unfortunately.
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