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Where Taxpayers and Advisers Meet

Property and CGT

Sujo
Posts: 1
Joined: Wed Aug 14, 2019 2:42 pm

Property and CGT

Postby Sujo » Wed Aug 14, 2019 4:57 pm

My husband owns the house we live in which he bought before I met him and is in his name alone and wants to sell it. I own 50% of a house I bought before I married which is shared with my sibling where I lived before I got married. My sibling still lives in that house. My husband has never lived there. I have a few questions
1- Does he have to pay cgt on the sale of his current house since I own a 50% share of another house.
2- if I wanted to sell my sibling my share of the house at the price we bought it 15 years ago can I do that even though the value has increased and are there any cgt costs since I am resident in my husbands house
3- what is the most tax efficient way to move forward with selling his house and my share of my house

Thanks

jerome.lane
Posts: 11
Joined: Mon Aug 12, 2019 8:41 am
Location: Camberley, Surrey
Contact:

Re: Property and CGT

Postby jerome.lane » Fri Aug 16, 2019 9:44 am

Hi

1. If your husband has always lived in the house he wants to sell, then he should not have a CGT liability. This is provided no elections have been made over other property you have an interest in (a married couple can only have one main home).
2. Your disposal of the part interest in the house you bought with your sibling will be deemed to be at market value even if you ask for less. The market value will be less than just half of the open market value. You will get relief if you have lived in the property.
3. Your husband should be able to sell his home without any tax concerns. You could reduce the CGT you pay on your part disposal with a little planning and if the numbers make it worthwhile. Contact me directly if you wish to explore this.
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203


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