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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7517
Experience:  FCCA FCMA CGMA ACIS
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In the last tax year i sold a rental flat so have to pay

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Hi, in the last tax year i sold a rental flat so have to pay capital gains tax can this be shred with my wife
JA: What are the assets or property for this capital gain?
Customer: it was a flat
JA: Anything else you want the Accountant to know before I connect you?
Customer: i lived in it for 4 year before we started letting it
Customer: replied 6 days ago.
Hi I bought a flat on my own in 1999 and kept it until 2018. I lived in it from 1999 to 2004 and let it from 2004 to 2018. I married in 2007. I am now doing my tax return and calculation the capital gains tax is there any way I can split it with my wife to make use of her allowance if so what is the best way of doing this?

The only way to do this would be to transfer half the ownership to your wife and split the CGT. HmrC would even advise that tax avoidance.

 

You owned the flat for 19 years and occupied for 6.5 years, for the last 18 month of ownership,9 from April) you are deemed to be in occupation even if this is not the case. Thus only say66% of any gain made is exposed to CGT at 18% or 20% or a combination of the two rates depending you the imdividuals' income including the gain in the tax year of disposal. Both of you have a non cumulative Annual Exempt Amount (AEA) to offset gains.

 

 

Customer: replied 5 days ago.
The flat was in my name and I sold it in 2018. Can myself and my wife both complete a self assessment for 2018 - 2019 and split the CGT even though the flat was in my name?

Not unless her name was on the deeds also.

Customer: replied 5 days ago.
Ok lesson learned, thanks.

Sorry not to be able to be mpre helpful.

 

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