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[email protected], Accountant
Category: Tax
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Experience:  Executive Director at [email protected]
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When my mum purchased her house in 2006 it was put in her

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When my mum purchased her house in 2006 it was put in her name as well as mine and my two siblings. She died last year and we are now selling the property. Can I use my husband's allowance for CGT to reduce the amount owed?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I don't think so
Customer: replied 3 days ago.
Are there any other ways I can reduce my Cgt bill? (I know I can use the stamp duty, estate agent and solicitors fees plus any work done to the property). I need to include my share for things like that but it would it be divided by 4 to include my mum since she was obviously alive and paid towards them at the time or 3 now that she is gone?

Hi, welcome to JustAnswer. I'm [email protected], a UK-Qualified Chartered Certified Accountant with over 15 years of experience. I'll be answering your question today.

You cannot use your husband's CGT allowance as he is not an owner. Every individual can only use his own allowance.

When you sell the property, you will calculate the Capital gains value by

Selling price

Minus: Purchase price + legal fees+ selling costs+ construction costs

Answer: Capital gain value

Dividend by 3 people, as your mother is no more.

Your share will be further reduced by the £12,300 CG allowance

The Net amount will be taxed under the CGT rates 18% or 28%

You should consult a conveyancing solicitor to work out the actual gain value and advise on the best way forward based on full case history.

Customer: replied 3 days ago.
Thank you. The 18/28% is based on my earnings. I earn 46k, does it take into account things that reduce my net pay, e.g. Pension etc?

No the CGT will take account of your total gross income including capital gain value. So you will be tax at 18% on the amount of gain between £4,720 (£50,270 - 46,000) and then 28% on the balancing value of the gain.

£50,270 is the basic income tax limit. Since you have earned £46,000, it leaves £4,720 to be utilised under basic rate and the rest will be charged at higher CGT rate.

Customer: replied 3 days ago.
Thank you. If I were to add my husband to the property (assuming I would need agreement from the other owners) is this OK in the eyes of hmrc?
And if one of the owners doesn't work is their allowance the same and they would pay at 18%?

If I were to add my husband to the property (assuming I would need agreement from the other owners) is this OK in the eyes of hmrc?

Yes, but transferring your part of aa share of the property to your husband is CGT free but transferring a joint share of the property to your husband will incur CGT and Stamp duty for your husband because he is receive a share in a property from his wife's siblings.

You should consult with a conveyancing professional before making such decisions because you might end up in a worse tax position unknowingly.

nd if one of the owners doesn't work is their allowance the same and they would pay at 18%?

Correct. He will pay tax at 18% on his CGT value upto £37,700 and 28% on the remaining balance of CG

Customer: replied 3 days ago.
Thank you for your help

You're welcome. Happy to help.

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