CGT Property disposal. Query about allowable costs...

[m1key]

HI,

First, a massive thanks to you all. I've used this forum extensively over the years and have only now reached the point where I can't find an answer by searching (although I'm sure it will be hidden somewhere).

Here's the order of events...

2003 my now wife bought a flat as her primary residence.
2007 50% of the property is 'gifted' to me as her spouse, but I never ended up living in the flat as we promptly moved and let the flat out.
2015 we sell the flat

AIUI...
a) For CGT purposes I acquired the asset on the date of the 'gift' and the value is assumed to be 50% of the original purchase price (including all legal fees, stamp duty etc).
b) I am not liable for any PPR as it was never my Primary Residence.
c) I can include 50% of the costs associated with disposal (legal fees, estate agents fees etc) as additional 'allowable expenses'

This puts me just over my CGT allowance, so I have a relatively small amount of tax to pay.

The question:
1) Can I include the legal fees associated with the 'gifting' of the property as 'allowable expenses'?
2) If I can, I assume only 50% of the actual fees?

Many, many thanks in advance,

Mike

[SteLacca]

I'd say that you can't claim any of the legal fees incurred in the making of the gift. These would be your wife's costs of disposal rather than your costs of acquisition. Since your wife has PPR available at that time, then there is nothing to relieve the costs against.