House Gifted 15 Years Ago Capital Gains?

Nobber_2

She has passed away

holly_hobby

No there is a mis-understanding that CGT liability/personal relief is only based on legal ownership it isn't ... its actually assessed on beneficial ownership, which doesn't always mirror each other (although typically in most circs of course it does.

Proving BO to HMRC for the wife is a little more difficult on a 2nd property which hasn't been let, ie we can't evidence division of rental income supported by Form 17, but equittible ownership between Spouse's may still be demonstrated. Such evidence in this case could be demonstrated by the OPs share of acquisition/maintenance/servicing costs being paid from their joint account, sale proceeds will be paid into their joint account, the property proceeds and any liability will be equally declared under each spouse's SA, etc .... this is not an exhaustive guide, and HMRC can be tempremental with this, so in the first place discuss this with your qualified accoutant/tax practioner.

But if HMRC accept the beneficial ownership claim re the OPs spouse (which I think they would), then yes both unused annual cgt exemptions (ie 2 x £10,900 2013/14) may be applied against their respective share of the gain, each spouse individually reporting their return/liability under their own annual SA (property pages).

Hope this helps

Holly x

John_Pierpoint

Nobber wrote: »

She has passed away

What connection if any did mum have with her former property?

The tax code of the UK is in a bl00dy mess, in that ordinary people cannot understand it [Perhaps the politicians have a vested interest in keeping it that way].

There are two capital taxes, and from bitter experience IHT & CGT don't mesh together logically, they are written to be administered by different tax clerks. The citizen can get caught playing piggy in the middle (a situation that clever accountants can exploit).

I cannot answer, what might be an "Aunt Sally" argument anyway, without a lot of research, but if you think you can fully understand this link, please come back and explain it to the rest of us:

http://www.taxation.co.uk/taxation/articles/2008/04/16/6317/poat-bay

dzug1

Nobber wrote: »

She has passed away

So when was the gift made, and did she continue to live in the property after then? If she did, did she pay rent?

Nobber_2

Hello, the gift was made 15 years ago and she continued to live in the house


Re sharing the Allowance with my wife we have only been married 1 year does that make a difference


thanks again

Laurajo_2

Was she paying rent to yourself and your brother?

Nobber_2

no no rent i paid the house insurance that was it

Laurajo_2

Did you take any advice on gifts with reservation of benefits and the pre - owned asset charge?

Nobber_2

no I didnt