CGT advice please..

nshharry

Hi I've got a few questions and from doing lots of reading last night you lot might have some answers/advice.

I have a house that i'm thinking of selling.
At the time it was valued at about £10,000 - hopefully it will sell for about £155,000 ish. I understand that I can knock off some money for estate agents,and money spent improving the house. So with fees and some other bits say £6000.

So if thats right, that will be CGT on £139.000.

Now, it's in my name but thinking it would be better to make it joint owner with my wife.(before putting it up for sale)

I dont work so have no tax code.
She is on about £24,000

Who can tell me what its going to cost? and if I can save anything.

Sorry it's so long, trying to put everything in...Bet I missed something...
Thanks

chrismac1

First of all, have you ever lived in this house - and if so, for what specific periods? When did you buy it and if you have not lived in it, what have you used it for?

ceeforcat

I have dealt with this on previous occasions. DO NOT put the property in joint names if it appears that the only reason for so doing is clearly evident to be for the tax saving. HMRC can and will challenge this transaction (for that is what it is ) as null and void. I know from previous experience.

The correct approach would be to:

1) Transfer into joint names formally while at the same time obtaining a formal independent valuation at the time of transfer.

2) Retain for a reasonable period of time - I would suggest one year at least. (This helps to disassociate the two transactions i.e. the transfer into joint names and the eventual sale.) If it is rented out both parties must declare half of the rental income.

nshharry

I have never lived there. I inherited it with long term tenent who has just moved out..