Capital Gains on Property

BrianFoz

Hi All,

Can anyone explain how I can file a capital gain through 2nd property sale on the HMRC website. I have a gateway account, but this appears to be individual, along with the Capital Gains Tax Account. 
The issue is that from my understanding I get a yearly £12300 allowance and my wife would also get the same. Can we combine our allowances to £24600 for the sale of one property and if so, how can I file this seeing as the website appears to be geared towards single accounts, which only allows a maximum of £12300 to be entered in the exemptions amount?

I have contacted HMRC, but I'm awaiting a call back as the person that answered the phone did not know the answer.

Jeremy535897

Is the property owned jointly in equal shares? If so, each of you declares half the gain on their own tax return/30 day return.

macman

And, if the shares are unequal, you claim across the total of £24.6k proportionally to each share of ownership.
If your wife owns no share, the maximum allowance will be your 12.3k allowance only. If this is the case, and you wanted to each utilise your full CGT allowance, then you would have needed to transfer a share of ownership to your wife before you sold the property.
It's rather depressing that the HMRC agent should have been unable to resolve this on the spot for you: married couples have been taxed independently since 1990, so you cannot share personal allowances or CGT allowances (with the exception of the Marriage Allowance). However, you can transfer assets to your spouse free of tax.

BrianFoz

Thanks for the answers, yes the property is jointly owned as we were married at the time of purchase.
So the sale of the house was for £100k after being bought for £65K several years ago. After taking into account Solicitor, Estate Agent and upgrades, the gain was £28000. On the form, it asks for house price bought, sold, improvement costs and fees. Do we enter half amounts for these each?

Keep_pedalling

BrianFoz said:

Thanks for the answers, yes the property is jointly owned as we were married at the time of purchase.
So the sale of the house was for £100k after being bought for £65K several years ago. After taking into account Solicitor, Estate Agent and upgrades, the gain was £28000. On the form, it asks for house price bought, sold, improvement costs and fees. Do we enter half amounts for these each?

Yes, you would claim half each, but you can’t claim all improvement costs. Things like a replacement boiler, and decorating can’t be claimed.

unholyangel

BrianFoz said:

Thanks for the answers, yes the property is jointly owned as we were married at the time of purchase.
So the sale of the house was for £100k after being bought for £65K several years ago. After taking into account Solicitor, Estate Agent and upgrades, the gain was £28000. On the form, it asks for house price bought, sold, improvement costs and fees. Do we enter half amounts for these each?

Being married at the time of purchase doesn't make it jointly owned. Who is named on the deeds? Who was entitled to the income from the rental?