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Where Taxpayers and Advisers Meet

CGT on an investment property 50 to 100% through probate

DavidAnthony1981
Posts:2
Joined:Wed Jul 21, 2021 12:38 pm
CGT on an investment property 50 to 100% through probate

Postby DavidAnthony1981 » Wed Jul 21, 2021 4:55 pm

I'm after some guidance on CGT on a sale of an investment property. The property was gifted with a probate value of £250k in 2016, ownership at this point went 50% share husband and wife from day 1 of the property being gifted in the estate.

In 2017 the husband died with the 50% share transferring to the wife in probate with a value of £300k. The property is now to be sold with a value of £350k.

Is it correct to assume the 50% husband share is not subject to CGT at death... Is it correct that the total gain is £75k only? Its this extra step that is adding confusion as CGT is sale value - price paid only normally.

To get to the £75k it's £50k for the 50% wife share from day 1, then the transferred 50% from death.

Thanks

maths
Posts:8256
Joined:Wed Aug 06, 2008 3:25 pm

Re: CGT on an investment property 50 to 100% through probate

Postby maths » Wed Jul 21, 2021 7:46 pm

Wife owns 100% of property. Sale proceeds 350k

Base cost for CGT of wife's 100% is 125K (50% in 2016) plus 150k (50% on husband's death when property worth 300k in total).

Gain for wife 350k less 125k less 150k ie 75k

Annual exempt amount 12,300.

DavidAnthony1981
Posts:2
Joined:Wed Jul 21, 2021 12:38 pm

Re: CGT on an investment property 50 to 100% through probate

Postby DavidAnthony1981 » Thu Jul 22, 2021 10:15 am

Thank you


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