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

Hi DoctorT Ajems,
The disposal would need to be calculated using UK rules with all values converted to GBP sterling. You can see guidance here:
HS281 Capital Gains Tax civil partners and spouses (2024)
Thank you.

Hi Fellwalker,
You will be sent a link on how to pay the CGT after you submit the disposal return. If you have no other reason for a tax return then you will not need to complete a tax return at the end of the year.
Thank you

My husband and I bought a property to rent out in Nov 2011. We were registered as joint owners (50% share each) at land registry. Recently we decided to transfer ownership to 51% me and 49% our son, who has now moved into the house as his primary residence. This was done by a solicitor by transferring my husband’s share to me so I owned 100% of the house for a day, and then transferring 49% of my 100% share to our son. How do I work out what CGT I owe? Thank you

Hi Karen,
As the transfer of your husbands share to you is not liable for CGT  until you actually sell the asset, you are liable on any  increase for the full 100 % ownership
back to the date the house was purchased -
Capital Gains Tax: what you pay it on, rates and allowances Gifts to your spouse or charity
Thank you.

Thank you. I am a bit confused so would appreciate clarification in view of penalties if I get this wrong.. As I owned 50% of the house (with my husband) and still own a share of the property (51%), I assumed I’d have to pay CGT just on the 49% I gave to my son, or on a 50% share. But my understanding from what you’re saying is that I have to pay CGT on 100% of the increase in value of the property since my husband and I bought it in 2011, (minus the £3K allowance and various costs). Does that mean that if /when I give up my 51% share that I will need to pay 51% on the increase in value between now and that future date, but that my son will pay nothing as the house would be his primary residence? I was under the impression that transfers between spouses incurred no CGT, so I’m a bit confused about the statement you made that my husband’s share to me is not liable for CGT until I sell the asset - if I need to pay 100% CGT within the next 60 days (the paperwork for transfers has already gone to Land Registry) then are you saying that he will need to pay CGT later on even though he no longer owns any part of the house? Sorry to have to ask more questions, but, as I wrote earlier, there are penalties if I get this wrong. Many thanks

Hi ,
 

Transfers between spouses incur no cgt at the time of the transfer. however, if either of you later sell the asset, you are regarded as having their share from the original date the asset was purchased and therefore liable on any increase from that date. Gifting all or part of the property to your son is seen as a disposal and if this is not your main residence then cgt is due . Thank you .

Hi we bought house with parents 30 years ago we have never lived in it . We have paid towards improvements. We have emigrated to NZ 15 years ago we have to sell the property as parent is ill and needs care how does this affect us with capital gains tax what is the process as a bit different as it has never been our residential home we just helped parents get a better home to live in.

We have recently sold a flat owned in joint names. If we split the proceeds from the sale and both submit CGT returns do we each get the benefit of £3000 CG allowance?

Hi ,
 

You will be liable for your share on any increase in value - see:  Tell HMRC about Capital Gains Tax on UK property or land if you’re not a UK resident    . Thank you .

Hi austin973,
Yes you do. As it is jointly owned you both need to declare it.
Thank you.