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Posted Mon, 21 Aug 2023 17:14:09 GMT by
Hi, I'm hoping for some clarification and I'll use round numbers to illustrate the question. Property 1 was purchased jointly 20 years ago by persons n, they married and divorced a month ago. Property 1 was transferred entirely to person B. The property was bought for £100,000, and is currently worth £300,000 so there was a gain of £200,000 in 20 years. 5 years ago, the property was rented out and has been ever since. So if sold now, there was be PRR (private residence relief) of 75% = £150,000 I believe. It is not anticipated that the property will be sold in the next couple of years, and for info, the financial order states that all liabilities for this property will be with . My question is - If it was sold after 25 years of ownership (5 years post Financial Order), is Jane liable for any capital gains tax incurred during their joint ownership while it was rented out? Also, how would  calculate the CGT on this property when it is sold? I can't find anything that gives this scenario, so I'm hoping I can get an answer here. Many thanks  .

Name removed admin 
Posted Thu, 24 Aug 2023 15:08:41 GMT by HMRC Admin 25 Response
Hi Jane Gosling,
Sorry, HMRC cannot comment on future events or scenarios as legislation and/or plans may change.
Thank you. 
 

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