Capital Gains - Annual exempt amount

deepam

Hi,

The current annual exempt amount arising from residential property is £12300. If I sell a residential property which I jointly owned with my spouse, does the annual exempt amount double ie £12300 for my spouse and £12300 for me?

Thanks

tacpot12

Each of you has your own CGT allowance of £12,300, so you divide the gain by two and each of you pay the CGT due on half the gain, deduction your own CGT allowance from it.  See here: Tax when you sell property: Work out your gain - GOV.UK (www.gov.uk)

Note that there is no CGT payable on a house that you have both lived in as your home for all the time you have owned it. 

Remember that you have to pay CGT with 30 days of the sale of the property, and each of you can be fined if you are late doing so.

As certain costs paid when you purchased the property can be deducted from the gain, it would be wise to have a list of all these costs ready for when the sale goes through. You can also deduct certain costs of selling the property, so add these to the list when the property has sold and both use the same list when submitting your CGT return.

Jeremy535897

tacpot12 said:

Each of you has your own CGT allowance of £12,300, so you divide the gain by two and each of you pay the CGT due on half the gain, deduction your own CGT allowance from it.  See here: Tax when you sell property: Work out your gain - GOV.UK (www.gov.uk)

Note that there is no CGT payable on a house that you have both lived in as your home for all the time you have owned it. 

Remember that you have to pay CGT with 30 days of the sale of the property, and each of you can be fined if you are late doing so.

As certain costs paid when you purchased the property can be deducted from the gain, it would be wise to have a list of all these costs ready for when the sale goes through. You can also deduct certain costs of selling the property, so add these to the list when the property has sold and both use the same list when submitting your CGT return.

The £12,300 is an annual exemption available against all capital gains, not just those from residential property.

The time limit of 30 days is increased to 60 days for completions after 26 October 2021:
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax