Capital gain tax - Property

Hi HMRC My wife and I purchased a property as joint tenant for £100,000. 6 years later, my wife transferred all her shares to me for £140,000 and I am sole owner of the property. I understand that CGT = Selling Price - Acquisition Price - Allowance (for simplicity, I do not include deductible expenses such as legal fee). If I am going to dispose 50% of the shares to my brother for £150,000, grateful if you would advise whether my understandings below are correct, or please correct: My total acquisition price = £240,000 Disposing 50% to my brother: Selling Price of that 50% shares = £150,000 Acquisition Price of that 50% shares = £120,000 Allowance = £6,000 Assuming I am high rate tax payer CGT = (£150,000 - £120,000 - £6,000) * 0.28 Many thanks

Hi,

As there is no Capital Gains Tax liability arising from the transfer of assets between spouses and civil partners, you are considered to have acquired your wife's 50% at the value the share of the property was acquired for by your wife.  

If you dispose of 50% of the property to someone who is not at arms length, you are required to use the market value of the asset when calculating Capital Gains Tax.

CG14541 - Consideration for disposal: market value rule: at arm's length

The difference between 50% of the market value at the time of disposal and 50% of the acquisition costs is either a gain or a loss.  

There is a calculator below, to help you calculate any liability and provide guidance on reporting and paying Capital Gains Tax within 60 days of the completion date.

Tax when you sell property

Thank you.