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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16546
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am going thruog mediation with my wife, and Capital Gains

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Hi, I am going thruog mediation with my wife, and Capital Gains Tax on a family home came up
JA: What are the assets or property for this capital gain?
Customer: family home
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: we have another ental propert in joint name, 50k cash savings and we are not planning to sell properties, just transfer ownership as a kind oy 'part payment', so I keep the cash and rental property, my soon-to-be ex-wife takes additional borrowing to buy me out of the family home.
Customer: replied 13 days ago.
few more details:
- we seprated on 15.02.2017,
- I moved out of the family home in July 2017. -
- I live now with a new partner in her home, I do not own it in any part.If we transfer the ownership in that property are we liable for CGT?
is there a way to claim it back,
how to calculate it?
thanks

Hi

You on the sale of your share of the marital home though the time you lived there and the last 9 months of ownership form an exemption/total period of ownership

And first £12300 is exempt

Then for the rental property being transferred into your name you wife will have a capital gain on her share (value at the time of transfer less purchase cost - this gain - of it her half share will be liable to capital gains tax after the first 312300 has been deducted from the gain

These both need to be declared to HMRC within 30 days and tax paid by that date too link  this

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

And your wife could also have stamp duty on refinancing the ex marital home

Thanks

Sam

Thanks

Sam

Customer: replied 13 days ago.
in that case what costs can be deducted - loft conversion, completely new kitchen - it was not a replacement of aplieces but complete refurb and everything new?
with the rental propert, we extended the lease on it, can we deduct cost of solicitors and the lease, too?

Hi

Loft Conversion and complete new kitchen for home

And yes lease extension on rental property

Costs to buy and sell so any stamp duty legal fees estate agent fees etc

Thanks

Sam

Customer: replied 12 days ago.
if I left the 'family home' in July 2017, the preiod to consider for CGT is between Apr 2018 and now, therefore I need to find out what the value of the proerty in Apr 2018 would have been? is that correct?
for example:
purchase price in 2006 - 269500
buy legal fees and SDT - 5000 (2006)
loft conversion - 40000 (2013)
new kitchen - 20000 (2015)
sell legal fees - 12000 (2021)
Value in April 2018 -???
value today 500000
so, 500000 - (value in April 2018) - (buy and sell legal fees) - (kitchen) - (Loft) - 12300 (tax free CGT aalowance) = taxable amount for CGT
I would then assume that the rate will depend on my sallary.
Is that a correct thinking?many thanks

Hi

No the gain is treated as having accrued over the whole period of ownership with hen the time it was your main residence and the last 9 months of ownership forming an exemption

If you want me to do the calculation or to clarify yours this will invoice additional services I am afraid as ive fully provided the calculation method

Thanks

Sam

Customer: replied 12 days ago.
ok thanks

Hi

You just need to let me know how you wish to proceed

Thanks

Sam

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