Discussion
Need to help trying to work out the potential liability
Flat was bought in 2003 with Mr living there for a year
It has been rented out ever since
2007 jointly owned with wife
Original purchase price £121k, current selling price £150k
Am I right he will have 4/12 of the gain set aside/exempt?
What about the Mrs share?
Any help much appreciated
Flat was bought in 2003 with Mr living there for a year
It has been rented out ever since
2007 jointly owned with wife
Original purchase price £121k, current selling price £150k
Am I right he will have 4/12 of the gain set aside/exempt?
What about the Mrs share?
Any help much appreciated
Alpinestars said:
Was it ever the Mrs' Principal Private Residence? If not, she'll be taxed in full on her share of the gain. Might reduce to nil with the annual exemption.
He should have no taxable gain.
Thanks for the replyHe should have no taxable gain.
She never lived there. It was purchased in Dec 2003 so just over 11 years ownership
So if my maths is correct his would be £29k/2=£14.5k *8/11=£10,545 which is less than his allowance.
I assume we would need the value in 2007 when he passed over 50% to Mrs
You'd have to work out the gain for both of them individually, so yes a valuation would be needed at the time they became joint owners.
He will get PPR and letting relief, and based on your numbers there should be no gain.
She will have a gain, no PPR type reliefs, but be able to use her annual exemption.
He will get PPR and letting relief, and based on your numbers there should be no gain.
She will have a gain, no PPR type reliefs, but be able to use her annual exemption.
Alpinestars said:
You'd have to work out the gain for both of them individually, so yes a valuation would be needed at the time they became joint owners.
He will get PPR and letting relief, and based on your numbers there should be no gain.
She will have a gain, no PPR type reliefs, but be able to use her annual exemption.
Thanks very muchHe will get PPR and letting relief, and based on your numbers there should be no gain.
She will have a gain, no PPR type reliefs, but be able to use her annual exemption.
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