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Where Taxpayers and Advisers Meet
Can common law wife help reduce income tax CGTon second home
My partner of 20 years and I would like to dispose of a flat that we have owned for 13 years.We now own it outright and the total cost's to date are around 55k.The family home and the flat are in my name only.We have rented out the flat for 75% of the time and we have not declared the income.My good lady has not been in employment for 15 years.The flat will sell for about £100,000.Could some of the rental income be offset against my partner and how could we minimise CGT.Could you please give me a rough guide to how much CGT would be due.Thank you for your time.
-
accountant@uktaxshop
- Posts:550
- Joined:Wed Aug 06, 2008 3:04 pm
Stan,
If you where married, you could joint ownership.
Unfortunately as a "common law" couple, you are not married from the tax manÂ’s point of view. A transfer into joint names now would simply trigger a CGT charge.
I cant do a CGT calculation from the information provided, as it is unclear whether you have lived in the property at any time (this makes a big difference) or what the purchase cost where. "costs to date" suggests ongoing costs, which may or may not be capital.
Also of concern is this lack of rent declaration - this could be rather costly in terms of fines and interest etc.
If you would like me to work out the CGT, and advise how to best to proceed, please let me know.
Regards
James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436
If you where married, you could joint ownership.
Unfortunately as a "common law" couple, you are not married from the tax manÂ’s point of view. A transfer into joint names now would simply trigger a CGT charge.
I cant do a CGT calculation from the information provided, as it is unclear whether you have lived in the property at any time (this makes a big difference) or what the purchase cost where. "costs to date" suggests ongoing costs, which may or may not be capital.
Also of concern is this lack of rent declaration - this could be rather costly in terms of fines and interest etc.
If you would like me to work out the CGT, and advise how to best to proceed, please let me know.
Regards
James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436
