This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

CGT uplift

CharlesP17
Posts:1
Joined:Mon Dec 24, 2018 5:14 pm
CGT uplift

Postby CharlesP17 » Mon Dec 24, 2018 5:33 pm

Hi please can someone shed some light on the following scenario, a bit of a head scratcher for me;

Mr X & Mrs X jointly own a 2nd property worth £100k. Bought originally for £50k. Allowable expenses in that time total £10k.

Mr X dies and property passes to Mrs X, market value still £100k.

Does all the gain die on death of Mr X?

So if Mrs X then subsequently sold for £120k a few years later it would just be the gain minus inherited market value (20k) that is applicable for CGT before CGT exemption?

Or does only Mr X’s proportion (50%) of the gain disappear before subsequent sale?

Thanks.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT uplift

Postby bd6759 » Fri Dec 28, 2018 12:44 am

Mrs X has allowable expenditure of £75K.

This is half the original cost and value of the other half when she inherited it.


Return to “Capital Gains Tax, CGT”