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Where Taxpayers and Advisers Meet

CGT on previous Main Residence

DaveH22
Posts: 3
Joined: Sun Sep 15, 2019 10:29 am

CGT on previous Main Residence

Postby DaveH22 » Sun Sep 15, 2019 10:36 am

My Wife is part owner of a property she shared with her ex until 6 years ago. It’s about to be sold.

I own the house we currently live in as I bought it before we married. (That’s not a big deal and we’ll probably organise joint ownership in the not too distant future.

The house she and her ex is selling was purchased for £29,950 in 1989. An extension was added which cost £6000. The house will sell for c. £140k.

Will she end up paying full CGT on her part of the sale or will this be pro-rated for the 6 years she hasn’t lived there (out of 30)?

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT on previous Main Residence

Postby pawncob » Mon Sep 16, 2019 12:32 pm

Yes she can claim PPR relief for the period it was her main residence, so the gain will be c £52k less relief of £43k, which is below the annual exemption.
With a pinch of salt take what I say, but don't exceed your RDA

DaveH22
Posts: 3
Joined: Sun Sep 15, 2019 10:29 am

Re: CGT on previous Main Residence

Postby DaveH22 » Mon Sep 16, 2019 2:32 pm

That’s great, thank you.
So, by implication, there is no need to reference the transaction on a return?
The reason I ask is that she doesn’t normally have to complete one.

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT on previous Main Residence

Postby pawncob » Mon Sep 16, 2019 3:01 pm

Most wouldn't bother.
https://www.accountingweb.co.uk/any-answers/do-sale-of-pprs-need-declaring-on-tax-return
With a pinch of salt take what I say, but don't exceed your RDA

DaveH22
Posts: 3
Joined: Sun Sep 15, 2019 10:29 am

Re: CGT on previous Main Residence

Postby DaveH22 » Mon Sep 16, 2019 3:48 pm

Excellent, thank you ☺️


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