Can anyone provide any basic CGT information?
I have a friend who is going through a seperation and there are potentially some CGT issues that may need ironing out.
First point is:
Marital home bought in 2016 for £330k and it is in a sole name (Mr). Valued today at circa £370k. The owner (Mr) of the property hasn’t lived there since Dec 2019 and therefore in my opinion would pay potentially CGT as there is a gain. Marital spouse who lives in the property with children would have no CGT to pay as this is currently her main residence.
Second point in this scenario:
There is a rental property that was purchased in (Mrs) sole name in 2004 prior to being married that was mortgage free. In 2009 it was moved into joint names with spouse and mortgage taken out.
Original purchase price in 2004 was circa £50k
Value at time of moving into joint names was £140k in 2009.
Current value today is £125k.
My understanding is for CGT is that the spouse would take the value at 2009 as his starting point, which is then halved and not use the original purchase for CGT in 2004. Therefore meaning that there is no gain as the value has gone down.
Am I right?
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch