Can we still get a Joint CG Tax Allowance if we go in 99/1%?

ChrisK....._3

So. My wife wants to buy a house to rent. If she sells in a few years she will pay capital gains and the Individual allowance is around £11k. If we both buy it then we get joint allowance of 22K. But I can't really afford it but could go in to it 1%. Can we still get a Joint CG Tax Allowance if we go in 99/1%?

anselld

You will get an allowance but your 1% share is unlikely to use much of it.

Perhaps you could persuade her to give you a bigger share rather than the tax man.

00ec25

property costs £100,000, you own £1,000, she owns £99,000

property sells for 150,000 resulting in a gain of 50k. Gain split 1/99
Your CGT liability is 50 x 1% = £500 less your allowance 11,300 = 0 taxable but with 11,300 - 500 = 10,800 of your allowance "wasted", ie unused

Her CGT liability is 50 x 99% = 49,500 less 11,300 = 38,200 taxable and all her allowance used up


the advantage you appear to be unaware of is legally married couples can gift assets between themselves as many times as they want tax free. So, in the above example she simply gifts you enough % ownership at a time of your choosing to use up your allowance and still leave you with 0 taxable. If she won't gift you something without expecting you to pay her, then tax is not your problem, your marriage is your problem.

ChrisK....._3

My mistake. I was thinking maybe she could benefit from "a joint" tax allowance of 22K rather than 2 x £11k individual tax allowances, assessed individually in our individual share.
I guess the answer is no then