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Where Taxpayers and Advisers Meet

Cap Gains Tax

Careys
Posts: 4
Joined: Sat Jan 19, 2019 10:56 pm

Cap Gains Tax

Postby Careys » Sun Jan 20, 2019 10:02 am

Hi I have tenancy in common on a house with my mother 95/5% The tenancy in common was taken out in 2006.We have now sold the house as I am the 95% owner do I have a CGT liability,as the house is worth less than it was in 2006?
Regards
Steve

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Cap Gains Tax

Postby AGoodman » Mon Jan 21, 2019 11:40 am

If you sold for less than you bought it at - and you sold for market value - then it is difficult to envisage a situation involving any tax as you have not made a gain.

Careys
Posts: 4
Joined: Sat Jan 19, 2019 10:56 pm

Re: Cap Gains Tax

Postby Careys » Mon Jan 21, 2019 3:05 pm

Hi I didn’t purchase the house in 2006 my mother just wanted me to have ownership no money changed hands

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Cap Gains Tax

Postby AGoodman » Mon Jan 21, 2019 3:57 pm

In that case, your acquisition cost is 95% of the market value on the day it was given to you.

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Cap Gains Tax

Postby AGoodman » Mon Jan 21, 2019 3:58 pm

but you still wont have made a gain

Careys
Posts: 4
Joined: Sat Jan 19, 2019 10:56 pm

Re: Cap Gains Tax

Postby Careys » Mon Jan 21, 2019 4:29 pm

Do I need to inform HMRC of the sale anyway?
Thanks

someone
Posts: 377
Joined: Mon Feb 13, 2017 10:09 am

Re: Cap Gains Tax

Postby someone » Mon Jan 21, 2019 8:12 pm

Do I need to inform HMRC of the sale anyway?
Thanks
If you have to do a tax return then you will need to include it (IIRC, disposals of assets over 4x the CGT allowance must be disclosed)

If you don't have to do a tax return then you don't need to tell HMRC as no tax is due. But it might make sense to write to them anyway as you might want to use the loss in the future and that will be easier if they already know about the loss.

It's somewhat surprising that a property owned for 12 years isn't showing a gain though. HMRC might query it when they learn of the sale from HMLR.

Careys
Posts: 4
Joined: Sat Jan 19, 2019 10:56 pm

Re: Cap Gains Tax

Postby Careys » Mon Jan 21, 2019 10:00 pm

Thanks for the advice regards


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