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Where Taxpayers and Advisers Meet

Spouse’s deemed purchase price for CGT

trainline
Posts:17
Joined:Sat Oct 02, 2021 4:25 pm
Spouse’s deemed purchase price for CGT

Postby trainline » Fri Jan 21, 2022 2:45 pm

Good afternoon,

I purchased a second home with one other member of the family. I gifted half my share (ie 25%) to my wife a couple of years ago. A full market value for the property was entered on the transfer documentation as advised by my solicitor, reflecting the then current value.
When we come to sell the property what does my wife take as her deemed purchase or base cost? Is it a quarter of what I paid for the property originally? Or is it a quarter of the market value as at the time of the gift?

Also, do I alone claim half the original legal costs and any improvement costs against the gain or should we both claim a proportion?

And finally are replacement windows and doors allowable as an improvement expenses against CGT?

Many thanks
T

pawncob
Posts:4878
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Spouse’s deemed purchase price for CGT

Postby pawncob » Fri Jan 21, 2022 9:48 pm

She inherits your history, so her cost is half of what you paid.(inc costs)
With a pinch of salt take what I say, but don't exceed your RDA

trainline
Posts:17
Joined:Sat Oct 02, 2021 4:25 pm

Re: Spouse’s deemed purchase price for CGT

Postby trainline » Sun Jan 23, 2022 9:18 am

Thank you for confirming.

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Spouse’s deemed purchase price for CGT

Postby bd6759 » Sun Jan 23, 2022 12:32 pm

Your disposal, and her acquisition, is at a value that means you have neither made a loss nor a gain. That’s not quite the same as inheriting your history.


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