Capital gains tax when property jointly owned husband/wife then only wife

Hello. I would appreciate some advice. My husband and I jointly bought a house in the UK in 1985. In 1997 we transferred the ownership into my sole name as the house was to be rented out and I was a lower rate taxpayer than my husband. We lived in the house on and off between 1985 and 2013, when we moved permanently to Spain (my husband was in the UK Armed Forces so we moved around a lot). We have original 1985 purchase documents (in joint names) and the Land Registry document from 1997 which states my sole ownership from June 1997 to now. My husband and I are still married and since 2013 we have lived in Spain full time. The UK house is now up for sale. Upon a successful sale of the property, my questions are: 1. Should my husband and I both complete a Capital Gains tax declaration, or only me? 2. On the CGT calculation webpage it asks for the date of purchase of the property. I assume that would be 1985? But I only paid 50% of the property purchase cost in 1985 (the funds came from our joint bank account but I suppose that is a nominal 50% each). I can't put 1997 as the purchase date because no money transferred hands - it was a straightforward transfer between husband and wife and there was no Capital Gains tax to pay at that time. Any help gratefully received. Thank you.

Hi,
 

"You have a choice as husband and wife, to split the gain 50/50 or for you to declare the gain as the beneficial owner.  If you choose to split the gain 50/50, you will both need to declare your 50% of the gain . There is a calculator at : Work out tax relief when you sell your home , to help you work out the gain  .  If you split the gain, both of you will need to perform separate calculations .  You may be entitled to private residence relief and you can find guidance at : Tax when you sell your home  .  Please note that if a gain arises, you have 60 days to report and pay any tax due, to avoid penalties and interest charges." Thank you.

I would like further confirmation that although a second property is in a sole name: in my husband and my case, it's in his name, we can sell it and choose to split the gain 50/50. We are being told by an accountant that before the sale of the property takes place we will have to have a deed of trust drawn up. The response I have just read does not imply this is necessary as husband and wife. Am I correct in this understanding?

Hi,

Where your husband is the sole owner of the asset at the time of disposal, he must bear the brunt of any capital gains liability from the disposal, alone.  

The property will need to be held in joint names, for a 50/50 split to be allowed.  

There is no Capital Gains Tax liability arising from the transfer of assets between spouses and civil partners.

Thank you.

Can I ask, where two people are not married but they are registered as joint owners how does CGT work in this case? Particularly where ownership is not 50/50? Is CGT allowance proportional to the ownership percentage or can they too declare 50/50 split? Thanks

Hi Richard,
It is split per the ownership of the property - Joint property ownership.
Thank you.