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Where Taxpayers and Advisers Meet

Former property and cgt

Josey
Posts: 3
Joined: Tue Apr 30, 2019 2:21 pm

Former property and cgt

Postby Josey » Tue Apr 30, 2019 2:29 pm

I originally purchased a home with my partner for £65k around 18 years ago. 12 years ago I bought my partner out, the property was then worth circa £130k. 6 years ago I bought a new property and have rented former property out.

The former property is now worth circa £170k.

Not knowing exactly how much the former property was worth 6 years ago, how would I go about calculating Cgt?

Thanks in advance for any guidance

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

Re: Former property and cgt

Postby pawncob » Tue Apr 30, 2019 9:12 pm

It's irrelevant.

The gain is the sale price less the cost, which is known.
You can claim PPR relief and letting relief against the gain.
With a pinch of salt take what I say, but don't exceed your RDA

Josey
Posts: 3
Joined: Tue Apr 30, 2019 2:21 pm

Re: Former property and cgt

Postby Josey » Tue Apr 30, 2019 9:50 pm

So we go all the way back to the original £65k purchasing price from 18 years ago? Does that seem right?

Jholm
Posts: 103
Joined: Mon Mar 11, 2019 4:22 pm

Re: Former property and cgt

Postby Jholm » Wed May 01, 2019 9:04 am

Yes. Consider PPR relief, lettings relief and other capital expenditure, including costs of acquisition and sale.

maths
Posts: 7562
Joined: Wed Aug 06, 2008 3:25 pm

Re: Former property and cgt

Postby maths » Wed May 01, 2019 12:54 pm

You refer to "partner". Are you referring to a civil partnership or marriage?

Assuming "yes" then your cgt charge will be based on 170k less 65k less any reliefs as referred to above.

If you are. not in a civil partnership/marriage then technically your base cost for CGT would be 32.5k (50% of original 65k post) plus 50% of value of property when you purchased partner's share (as it appears 50% of 65k ie 32.5k); so base cost is 65k.

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: Former property and cgt

Postby someone » Wed May 01, 2019 6:22 pm

You say you bought partner out when it was worth 130k.

If you were not married and you paid 65k for their half share then base cost would be 97.5k.

Not sure of the situation if this was part of a divorce.

But even if you were married you get 12 years PPR so in round numbers taxable part of gain after PPR is 30k and lettings relief will be more than that so no CGT to pay. (done in my head so might have missed a zero somewhere)

Josey
Posts: 3
Joined: Tue Apr 30, 2019 2:21 pm

Re: Former property and cgt

Postby Josey » Wed May 01, 2019 8:57 pm

I like the last post the best. It’s all v confusing. Thanks to everyone for taking the time to respond, much appreciated.


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