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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Unfortunately you cannot split the gain between the pair of you. Husbands and wives are separate persons as far as UK taxation is concerned so the Capital Gains Tax (CGT) falls entirely on her shoulders.
The renting out of the property does affect the CGT. Did she ever occupy it as he sole or main domestic residence? Also in what accommodation do you and your wife reside?
She is liable to CGT for the whole gain made on the property. For the last 18 months of ownership she is deemed to be in occupation even if this is not the case, so there will be a slight reduction to the quantum of the gain depending on the total ownership time. CGT is levied at 18% or 28% or a combination of the two rates depending on her income including the gain in the tax year of disposal. She has a non cumulative Annual Exempt Amount (AEA) of 11.3K to offset the gain.
I do hope that you have found my reply of assistance.
18 / 197 = say 91% of the gain will be subject to CGT.
Thank you for your support.
CGT is a nasty little tax which can creep up on you unawares. One customer bought a flat for his son to live in at Uni, but kept in in his own name. His son lived there for years after graduating and when it was ultimately sold it cost Dad 38K in CGT.
You won't, it isn't there! You should tak it into account in your CHT declaration by reducing the gain.
I meant CGT declaration, sorry, the SA108 form..
Delighted to have been of assistance.