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Sam, Accountant
Category: Tax
Satisfied Customers: 7544
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I own a half share with my new husband in a property I bought

Customer Question

I own a half share with my new husband in a property I bought from the proceeds of my own house and his house. We only live in this house 10 days or so a month. This is valued at £275.00. It is not let out.
I live in the house my new husband owns and he has left to his children in a will. This is valued at £600.000. We intend to sell both properties and he has said that we will have to pay capital gains on both properties. The new house will be in his name only. As I only own a half share of £275.00 from the proceeds of my own house sale in 2009 what will I have to pay?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
You will certainly have to pay Capital Gains Tax (CGT) on one of the properties. If no election has been made as to which house Private Residence Relief (PRR) is to apply, and a married couple only have one tranche of PRR between them, HMRC will base it on the facts which I suggest will be your new husband's residence. In that case there would be no CGT due on its disposal. It would thus appear that the gain on your 275? house will be the subject of the tax. This is levied on the gain between the acquisition price and the net selling price. The acquisition price is inflated by the buying costs including the stamp duty or equivalent and any improvements. As your question is silent as to the acquisition price and also the possible selling price I cannot compute your possible liability.