Capital gains / Self assessment help needed

strettie3104

Hi Guys,

Myself and my partner made a capital gain on a property last year and have both registered for self assessment.

To cut a long story short, we purchased a property which was sat on land we already owned. We sold it about 7 months later as a freehold property and made a gain of around £40k

We are not married and naturally want to take advantage of our £10,100 exemption each if possible so that we would both end up paying tax on around 9 or 10k, partially at 18% and partially at 28%.

I've had a look at the SA form online and I can't really see a way you can explain that the gain was made with other people involved.

Anyone done anything similar and can shed any light?

ceeforcat

Generally one would put half of everything on each SA return - half the proceeds, half the costs etc.

Did you ever live in it?

strettie3104

Unfortunately not. We would have moved into it for a couple of months to try and avoid the tax but it was nearly 200 miles away from where we currently live.

So it's as simple as splitting it all in half on the SA ?

ceeforcat

Indeed - The form is not about declaring a Capital gain on a property- it is about each of you have to declare your own Capital Gain.

Each beneficial owner is treated as making a separate disposal based on their share of the proceeds and the costs. Your share of the proceeds will reflect your share of the beneficial ownership.

By all means state in the 'Additional Information box' that the property was sold jointly. But if you think for one moment that HMRC will link the two returns .................

chrismac1

It is 50-50 unless you have elected otherwise, so 50% on each tax return.

strettie3104

Cheers for the help everyone