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Posted Tue, 17 Sep 2024 18:07:52 GMT by jcmckee
As part of our finance agreement my wife purchased my share of the marital home and I purchased her share of a second home. These were completed at market value. The second home had an original cost of 200k (100 each) and in the divorce valued at 330k. Therefore I purchased her share for the market value. Now selling property. What do I use as the cost for cgt? Is it the original 200 or the market value when transferred to my name. The deeds will show original cost but my purchase was the increased value. No cgt was applicable at the divorce finance agreement.
Posted Thu, 26 Sep 2024 09:38:31 GMT by HMRC Admin 20 Response
Hi,
Your initial 50% cost was 100k and the purchase of the other 50% was the market value £165k.  Add both together to obtain your acquisition cost for 100% of the property.
Thank you.

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