Capital gains tax on rented property that was 50/50 but now 99/1?

Capital gains tax on rented property that was 50/50 but now 99/1?

15:07 PM, 14th July 2022, About a month ago 3

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I have just sold a rental property and am slightly unsure regarding capital gains tax.

We made a profit of £77,000. The property was originally bought in joint names 50/50 basis with my husband, but we changed a few years ago as he is now disabled so I owed 99% and he owns 1%.

Does this mean although at some time it was 50/50 I can only claim the tax for this year, which means I pay approximately 13k in tax on my 99%?

Many thanks

Sarah

Editor’s Note:

HMRC CGT tax calculator >> https://www.gov.uk/tax-sell-property/work-out-your-gain



Comments

Mark Alexander - Founder of Property118 View Profile

16:30 PM, 14th July 2022, About a month ago

Capital Gains is shared in accordance with beneficial interest. Therefore, you should have annulled your Declaration of Trust and notified HMRC you were 50:50 again before the sake completed if you wanted to use both of your annual CGT exemption allowances.

As it stands, you own CGT on 99% of the capital gain.

Sarah N Adrian Williams

10:29 AM, 15th July 2022, About a month ago

Reply to the comment left by Mark Alexander - Founder of Property118 at 14/07/2022 - 16:30
Thank you for confirmation.

That is what I thought, but just wanted it confirmed by a professional.

Sarah

paul kaye

10:38 AM, 15th July 2022, About a month ago

shame you changed your share of ownership.
Your partner will not pay any tax as his allowance of £12300 will see to that.,However, after your own £12300 allowance you will pay CGT on your profit at a rate of 18% or 28% depending on your other income
because Capital gains are added to your income to work out the rate.
remember to claim costs of buying the property,legal etc
I would have an accountant do this for you.
Paul

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