Capital Gains Tax Question

[romeogolf]

Purchased property in 2009 for £143,000 in joint names - 50/50.

In 2015 equity from one buyer was transferred to the second. Value of property estimated at £220,000.

If the current owner chooses to sell in the future, is the CGT calculated on the original 2009 price, or is it more complicated based on the value when the second half was transferred etc?

I'm not likely to sell for at least 5 years, but curious as to how this is calculated.

Thanks.

[romeogolf]

audidoody said:

Presumably this is a second home as there is no CGT on a main residence. I think you'll find the gain is calculated from the date that the Land Registry recorded the name (whether in joint ownership of not).

At the time of purchase it was the only property in my name (primary residence being in my parents' house). At time of transfer it was also my only owned property as I am a private tenant elsewhere. I'm in the process of purchasing two further properties, however my main home will still be as a private tenant elsewhere.

[romeogolf]

uknick said:

From what you have said as to the increase in value, if it wasn't a spousal transfer did the previous owner paid any CGT due when you bought them out? I raise this because HMRC might check into the previous transfer of equity.

I didn't buy him out as such, it was given to me. There was no transfer of money.

[romeogolf]

uknick said:

How did you present the transfer value on the Land Registry documents?

We indicated the current value was £220,000 with no money changing hands for the transfer.

[romeogolf]

Thanks for the replies. Have been in touch with an accountant I know through work who's going to sort it out for me.