Calculating Capital Gains Tax

GillyEdmonds

Is there an easy way to calculate Capital Gains Tax? My husband and I are getting a divorce after 8 years separation. We own the marital home and a second house and are planning to transfer the deeds of one to him and one to me. I believe that CGT will be payable on the second property so we would like to work out approximately how much it is likely to be.
We have owned the property for 15 years, paid £59k for it and it is now valued at £140k. Is the CGT going to be 28% on half of the difference between the price paid and the value now?

Tom99

[FONT=Verdana, sans-serif]You should be able to avoid any immediate CGT on the 2nd property if you transfer it within the same tax year you have lived together.

[/FONT] [FONT=Verdana, sans-serif]If that is possible then whoever takes on the 2nd property will have a contingent CGT liability for when they eventually sell so you might want to take that into account when you divvy up the other assets.

[/FONT] [FONT=Verdana, sans-serif]https://www.gov.uk/government/publications/husband-and-wife-civil-partners-divorce-dissolution-and-separation-hs281-self-assessment-helpsheet/hs281-spouses-civil-partners-divorce-dissolution-and-separation-2016[/FONT]

00ec25

Tom99 wrote: »

You should be able to avoid any immediate CGT on the 2nd property if you transfer it within the same tax year you have lived together.

yes but they separated 8 years ago so that door has closed, as I pointed out when the OP first asked this question 5 days ago

https://forums.moneysavingexpert.com/discussion/comment/74270997#Comment_74270997

00ec25

GillyEdmonds wrote: »

We have owned the property for 15 years, paid £59k for it and it is now valued at £140k. Is the CGT going to be 28% on half of the difference between the price paid and the value now?

rather than write out an explanation again

very approximately you have a gross gain of 95, it appears 50/50 ownership so 47.5 each . Less CGT allowance 11.7 = taxable 35.8 each, Second home, never (??) a main residence, so no relief available other than personal allowance, therefore:

as for the rate payable, read step 5 (ignore reference to letting relief, that does not apply in your case) in this example:

https://forums.moneysavingexpert.com/showpost.php?p=73621764&postcount=2