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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife and I have each gifted 25% of a second property we

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My wife and I have each gifted 25% of a second property we owned as tenants in common to our son.We are in the process of filling in our tax return and are each showing our gain based on 1/4 of the market value of the property less 50% of legal costs each minus 1/2 the expenses incurred at purchase.
Is this correct.

The following applies to each of you assuming you have each gifted half your respective shares of the property to your son:

1 Your deemed disposal proceeds are 25% of the value of the property.

2 You can each claim for 50% of the legal costs incurred in the transfer of part of the property to your son.

3 You can each claim for 25% of the purchase expenses.

I hope this helps but let me know if you have any further questions.
TonyTax and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Does this mean if we sell the house at a later date we claim the other 50% of the purchase expenses in the proportion in which the property is presently owned.

No, your son will have a different cost base to you and your wife. He didn't bear the cost of any of the original purchase expenses so they will be split between you and your wife.