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Where Taxpayers and Advisers Meet

CGT Allowance when Unequal Ownership

Martintaxes
Posts:40
Joined:Fri Apr 28, 2017 12:25 pm
CGT Allowance when Unequal Ownership

Postby Martintaxes » Mon Jul 08, 2024 11:22 am

Hi TW,
My wife and myself are about to sell a BTL property and I am unsure about the £3000 CGT allowance. We own the house in 1%/ 99% shares and wondered if we both are still allowed to claim the £3000 allowance? If not, how is the allowance worked out please?
Many thanks in advance,
Martin.

wamstax
Posts:2022
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Re: CGT Allowance when Unequal Ownership

Postby wamstax » Mon Jul 08, 2024 11:27 am

each owner is taxable on their relevant share of the asset and entitled to their own annual exemption - assuming that the 1% gain exceeds £3,000 failing which that owner will only use so much of the annual exemption as is needed to make the share of the gain covered by the annual amount needd up to £3,000
regards and hope this helps
http://www.wamstaxltd.com
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Martintaxes
Posts:40
Joined:Fri Apr 28, 2017 12:25 pm

Re: CGT Allowance when Unequal Ownership

Postby Martintaxes » Mon Jul 08, 2024 11:59 am

Perfect, thanks for the prompt reply!
We haven't yet put the property on the market and may decide to rebalance the ownership with a new deed/ Form 17, in advance. I estimate a gain of about 100k, and we also have some marginal tax limits to think about, so an e.g. 5%/95% may help here too.
Best regards,
Martin.


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