Help with Capital Gains Tax Calculation please

SoFedUpOfBeingRippedOff

Hi, I am hoping that somebody can help me with a CGT calculation please. It is my understanding that private residence relief and lettings relief will apply and so I am hoping that there will be nothing to pay. In particular, I would like help understanding how the gain should be split between myself and husband (is it 50/50 or not?). We weren't married at the time of the transfer of equity but we are now.

Timeline is as follows:
31/10/08 Purchased property for £164,500 in sole name to live in, partner (now husband) moved in at later date
19/12/11 Transferred property into joint names and remortgaged (value £190K, mortgage £91K, 1/2 mtg passing for debt, 1/2 equity passing for gift), not married at time
6/1/14 Remortgaged property (still living in it at this point)
21/10/16 Moved house, began renting property out to tenants
1/2/19 Remortgaged property to BTL mortgage
20/8/19 Tenants moved out
6/12/19 Sale of property for £245,000

So total gain = 80,500 - split 50/50 to 40,250? Or not?
Deduction of fees paid at this point? - would this be split 50/50?
Time between purchase and sale - 133 months?
Time between tenants moving in and out - 33 months minus 18 months for period at end of ownership?
So I am guessing that CGT would be due on 15/133 proportion of the gain, leaving a figure of less than £10k on the total gain which would be wiped out by our CGT allowances for the tax year?

Am I on the right track? Can anyone please help to clarify? Really appreciate any responses. Thank you.

JonMitchell

In summary, married couple can use 50/50 split though you need to consider both your earnings figure, eg one earning at £10K, the other earning £50K. It would make sense to use a different ratio so that you do not pay over top for tax - which you would if using a 50/50 split.

You can also add in capital expenditure costs, like furniture, fittings, equipment etc which needs to depreciate in value over time to bring down your CGT - which are considered capital expenditure ("Loss") that you can offset against your CGT. You should include all of the items that were rented together with your house and calculate this from the beginning of your rental season.

Not sure if you submit your own self-assessment, do you?

00ec25

JonMitchell wrote: »

In summary, married couple can use 50/50 split though you need to consider both your earnings figure, eg one earning at £10K, the other earning £50K. It would make sense to use a different ratio so that you do not pay over top for tax - which you would if using a 50/50 split. what makes you think they can use a different split on a whim?

You can also add in capital expenditure costs, like furniture, fittings, equipment etc which needs to depreciate in value over time to bring down your CGT - which are considered capital expenditure ("Loss") that you can offset against your CGT. You should include all of the items that were rented together with your house and calculate this from the beginning of your rental season. I am speechless

Not sure if you submit your own self-assessment, do you? tenants moved out in 19/20. We are still in 19/20 for tax return purposes....

perhaps inadvisable to answer tax questions when you do not know enough about tax to do so