Capital gains tax on gifted rental property

lilacsnoopy

Hi i inherited a half share of a property in 1986 which has always been rented out.
I transferred half of my half share to my husband in July 2015.
In October 2015 the property was then sold.
I'm aware that capital gains tax needs to be paid and that it would be based on the value of the property when i inherited it and when it was sold.
How would my husbands captial gains tax be calculated?
Is the value of the property when it was transferred to him in July 2015 used?
If so as it was sold in October 2015 could there be no tax due on his share if it's less than his personal allowance?

Thanks

Keep_pedalling

Your husband's personal allowance for Income tax does not come into it, if his share of the gain was over £11,100 then there will be tax to pay.

Have you both completed tax returns for 2015-16 as you should have done if you had taxable gains on the sale?

Be aware that as the transfer happened so close to the sale HMRC may take the veiw that the transfer was done solely to avoid tax, so could challenge it.

CLAPTON

lilacsnoopy wrote: »

Hi i inherited a half share of a property in 1986 which has always been rented out.
I transferred half of my half share to my husband in July 2015.
In October 2015 the property was then sold.
I'm aware that capital gains tax needs to be paid and that it would be based on the value of the property when i inherited it and when it was sold.
How would my husbands captial gains tax be calculated?
Is the value of the property when it was transferred to him in July 2015 used?
If so as it was sold in October 2015 could there be no tax due on his share if it's less than his personal allowance?

Thanks

your husbands gain will be based on value at 1986