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CGT on flat sale
RPCtech
Posts: 3 Newbie
in Cutting tax
Hi all,
My wife and I bought a flat 3 years ago and have rented it out since. We have now put it up for sale and know I will have to pay CGT.
It was bought in both names but only I have been dealing with yearly tax return and paying all the tax that was due.
Is it possible now to split the liability so we can both claim the £11100
allowance ?
Thanks
My wife and I bought a flat 3 years ago and have rented it out since. We have now put it up for sale and know I will have to pay CGT.
It was bought in both names but only I have been dealing with yearly tax return and paying all the tax that was due.
Is it possible now to split the liability so we can both claim the £11100
allowance ?
Thanks
0
Comments
-
The flat is in joint names which means that both should have prepared tax returns. declaring half of the income each to HMRC.
With regard to CGT, you have no option other than to 'split' as you say - what you should have done with the income! You each have your annual exemptionThere are 10 types of people in the world - those who understand binary and those who do not. :doh:0 -
As the amounts were relatively small it was easier just to claim on one.
So if I split and claim both allowances after the sale will HMRC think its a bit strange and investigate or will they just be happy that tax had been paid.0 -
As the amounts were relatively small it was easier just to claim on one.
So if I split and claim both allowances after the sale will HMRC think its a bit strange and investigate or will they just be happy that tax had been paid.
assuming the property is register at the land registry in both names then you have no choice but to declare the capital gains separately for each of you: half the gains each0 -
So the question now is should I contact HMRC and tell them that I should have done the returns 50:50 and that I made a mistake or just fill the next return 50:50 and see what they say.
I imagine they won't take too kindly to either.0 -
So the question now is should I contact HMRC and tell them that I should have done the returns 50:50 and that I made a mistake or just fill the next return 50:50 and see what they say.
I imagine they won't take too kindly to either.
I don't really know how HMRC will react
but in this case doing the right thing is to your financial advantage
and HMRC have presumably actually gathered the correct tax for the rental?0 -
I don't really know how HMRC will react
but in this case doing the right thing is to your financial advantage
and HMRC have presumably actually gathered the correct tax for the rental?
Doesn't failure to register for self assessment and failure to submit returns bring with them penalties and interest?The only thing that is constant is change.0
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