Capital Gains Tax fiasco

cheerful19

00ec25. Thanks for the comments. However, nearly had heart attack at the end! Are you saying that adding my husband as tenants in common, as the plan stands, will mean losing half the PRR and Letting Relief I accumulated over 20 odd years? I will seek professional advice, of course, but just so I can sleep (or not) tonight:
His gain would be calculated as: Sold price in, for example, 2020 minus Purchase price from 1996. The PRR would be approportioned as 1/24. And no letting relief since letting happened before he owned it?
Whereas my share would have PRR 21/24 and Letting Relief for the 3 yrs rental?
If that is the case, it would be ruinous and your flagging this up now a real eye opener. What would happen if I transfer the entire property to his name? What would happen to those 24 years? Would he ‘inherit’ the original purchase price or would the purchase price be an updated market value at date of transfer into his name?
(un)cheerful19

00ec25

cheerful19 wrote: »

00ec25. Thanks for the comments. However, nearly had heart attack at the end! Are you saying that adding my husband as tenants in common, as the plan stands, will mean losing half the PRR and Letting Relief I accumulated over 20 odd years? I will seek professional advice, of course, but just so I can sleep (or not) tonight:
His gain would be calculated as: Sold price in, for example, 2020 minus Purchase price from 1996. The PRR would be approportioned as 1/24. And no letting relief since letting happened before he owned it?
Whereas my share would have PRR 21/24 and Letting Relief for the 3 yrs rental?
If that is the case, it would be ruinous and your flagging this up now a real eye opener. What would happen if I transfer the entire property to his name? What would happen to those 24 years? Would he ‘inherit’ the original purchase price or would the purchase price be an updated market value at date of transfer into his name?
(un)cheerful19

LOL, that got your attention

in order to "inherit" your claim to PRR he must be living in the property with you at the date of the transfer. Meet those conditions and he does inherit your PRR which it appears you will, so he'll get it.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64950

he will, as stated, also "inherit" your original purchase price, the so called "no gain, no loss" rule
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg22200

cheerful19

Phew, I can sleep tonight! Cheers

cheerful19

Hang on a minute, was the original statement (which you have now crossed off) a joke? If so, wicked sense of humour!

00ec25

cheerful19 wrote: »

Hang on a minute, was the original statement (which you have now crossed off) a joke? If so, wicked sense of humour!

me, wicked ? :A