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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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At the time of my husband's death in 2009 we jointly owned

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At the time of my husband's death in 2009 we jointly owned two properties, which afterwards I owned outright. I sold one of these for £180K in Oct 2015. We originally purchased it for £166K in 2007. Would I have to pay Capital Gains Tax on this? I have never needed to pay CGT on anything to date.
Hi. Unless the property you sold in October 2015 was your main home for the entire period of ownership or you sold it within 18 months of moving out, you may have Capital Gains Tax to pay. The cost of the property you sold is the sum of 50% of £166,000 and 50% of the value when your husband died in 2009 assuming you owned it in equal shares. The first £11,100 of any gains you make in a tax year are tax free. If the property you sold was your main home at any point during your ownership of it, you will be entitled to main residence relief for that period and if it was ever let, letting relief. Read about these in HS283. There are two rates of CGT for 2015/16, 18% and 28%. The rate or combination of rates that you will pay is dependent on the level of your income in the tax year of disposal. I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
Hi, thanks for this - I'll have to read the linked leaflet as the I did live in the property for some periods and it was rented out for a while.The value of the property actually fell between our purchase of it and my husband's death, so from your reply it seems that I will be deemed to have made a greater capital gain than was the case. Is this correct?Many thanks,***** *****
If it did fall in value between the date of purchase and when your husband died then your base cost will be less than £166,000 for CGT purposes. However, if you lived in it and it was let, you will get some relief for your occupation of it and letting relief will reduce the taxable gain further.
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