Capitan Gains Tax

[Peter D]

Base on your figure it looks like this :
Purchase 261000 06/07/2001
Disposal 410,000 14/06/2012
Total Gain 149,000
PRR 81,893 72 131 PPR ration in whole months
Capital Gain 67,107
Lett Relief 40,000 Qual Days 1794 Remmber the you can not cliam LR in the last 36 months
Net Gain 27,107
CG Allow 10,600
CGT 18% 0 0
CGT 28% 4,622 4,622

CGT Bill 4,622 Note the gain is £149,000 not £140K

However if you did an interspousal transfer on the basis of no gain lo loss of 10% of the property these would be the bills. Remember that she would not get an PPR or LR relief as she has not lived there as an owner
So you 90% share :

Purchase 234900 06/07/2001
Disposal 369,000 14/06/2012
Total Gain 134,100
PRR 73,704 72 131
Capital Gain 60,396
Lett Relief 40,000 Qual Days 1794
Net Gain 20,396
CG Allow 10,600
CGT 18% 0 0
CGT 28% 2,743 2,743

CGT Bill 2,743

Your wifes 10% share

Purchase 20880 06/07/2001
Disposal 32,800 14/06/2012
Total Gain 11,920
PRR 0 0 131
Capital Gain 11,920
Lett Relief 0 Qual Days 0
Net Gain 11,920
CG Allow 10,600
CGT 18% 238 0
CGT 28% 0 0

CGT Bill 238


Total CGT bill £2,961 A bit saving dor a Declaration of Trust and a Form 17. This assumes your wives income plus the net gain is still in the lower tax bracket.

This would have to be done and in place prior to and exchange of contract date, at a whole month ideally two.

Regards Peter

[Peter D]

Sorry a Typo. it is an 8% share of the property. Regards Peter

[aliman22]

Thank you so much Peter. You're break down has made things very clear. I really appreciate all your help.
Thanks.
Regards
aliman22