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bigduckontax, Accountant
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I have recently separated from my husband. I left the

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I have recently separated from my husband. I left the marital home on 15.3.19. Filling out financial disclosure form and am unsure if I would have to pay capital gains tax on our jointly owned home if it is sold?
Assistant: What are the assets or property for this capital gain?
Customer: The house has been valued at 850,000. No mortgage
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: Do you charge for this service?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Well, yes and no! If the sale is done in the tax year of separation there is no Capital Gains Tax (CGT) liability. If after that then yes, but Private Residence Relief (PRR) will apply for the period you lived in the house as your sole or main domestic residence and for the last 18 months of ownership when you are deemed to be in residence even if this is not the case. Thus only a proportion of the gain will be exposed to CGT and you have a non cumulative Annual Exempt Amount (AEA), currently 12K, to offset this.

Customer: replied 3 months ago.
How do I calculate CGT?
Customer: replied 3 months ago.
I’m afraid I don’t have any spare money to do that at the moment but thank you

Take the acquisition cost which is the purchase price plus costs plus stamp duty plus improvements. Now find the current market value as at the date of sale less selling costs including advertising. The difference is the gain which will be taxed as I have explained.

I see Just Answer has offered you a telephone call, it is not essential

Customer: replied 3 months ago.
As I have only just moved out and it was my only home until that point then PRP counts up until 15.3.19. If I am only calculating CGT from this point I presume the calculation is different. Would be done on valuation when I moved out rather than first purchased???

Please define 'only just moved out,' date of separation?

Customer: replied 3 months ago.
15.3.19

Any gain made before 5 April 19 is excluded. Any gain made post that date will be charged proportional to ownership time and occupational time, but don't forget the last 18 month when PRR is extended anyway.

Customer: replied 3 months ago.
Sorry if I’m being dense but if PRR is extended for 18 months and I only moved out 2 months ago then I wouldn’t have to pay CGT if house sold within next 16 months? Not sure I’m understanding what it meant by the extension. At what point does the extension commence?

Actually it applies to the last 18 months of ownership so you have to count back from the selling date.

Customer: replied 3 months ago.
Thank you for your advice

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