CGT on Sale, Joint owners confusion

Hi I have a property which I have just sold and is now subject to CGT as it is a Buy to Let. The property is jointly owned. This is a little confusing so I will bullet point the facts so that it is easy to follow. Owner 1 purchased property in 2016 and lived in this property as main residence. Paid in full, no mortgage. Owner 2 (partner, not spouce or civil partnership) was added to the Title Deeds through a remortgage and transfer of equity in May 2018. Both owners lived in the property until February 2019. In March 2019 it was let out. The question is when completing the CGT form online the question is asked "how much did you pay for the property?" Should Owner 1 put the full amount in that box or 50 percent of the purchased price? Because at the time of first purchase in 2016 the house was purchased by only 1 person. There is a note on the page when completing the CGT form, that if the property is owned jointly that you would put 50% of the purchase price in that field along with 50% of the sale price in the other section. The issue is if Owner 1 puts 200,000 for the purchase price but the property was sold in February 2024 for 250,000 (with 2 owners, 50% each), should Owner 1 state the purchase price for 100,000? Because Owner 1 would be putting a purchase price of 200,000 and a sale price of 125,000 which would not make any sense. Because the property has gone from 1 owner from first purchase to now being sold with 2 owners, I am unsure how to treat this on the form.

Hi,

As you transferred part of the ownership in 2018, you would need to report a gain from then, based on the transfer. As such you will only account for the cost of the 50% purchase price when selling. Owner 2 should then use the value when they acquired it, please note it is the market value and not necessarily the morgage price that you are using for the gain in 2018.

You will need to submit a late return or amendment to delcare this. You can see guidance here:

Tax when you sell property

Thank you.

My question is similar.in 1987 my sister bought a property and put it in joint names with me.She died in 2014 when it became mine. I am selling so when is CTG calculated from .

Hi,

You will have two calculations to perform. The first is your share using the acquistion cost in 1987. The second is the inherited share, based on the probate value of the property.  

Each calculation can have your share of the costs applied such as solicitor's fees, estate agent fees and so on, and the difference is the gain or loss.  

You can use the calculator to help you calculate any gains, as well as report and pay the Capital Gains Tax due here: 

Tax when you sell property

You can also see guidance on Private Residence Relief here:

Private Residence Relief (Self Assessment helpsheet HS283)

Thank you.

Hello I own a property jointly with my husband. When we complete CGT form do we put the purchase and selling price as 50% each? Can we claim £3000 each before tax?

Hi,
Yes, that is correct.
Thank you. 

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