Capital Gains Tax

Deano23

when doing the return for me and my wife, i gifted her the house i inherited so do i do all  the numbers on her return as todays numbers , and my return on the house 5 years ago ? 

Jeremy535897

You inherited 100% of a house 5 years ago, which you have gifted to your wife. Is that correct? When was the gift?

Does your wife still own the house? Have either of you ever lived in it as your main residence? Is it let out?

Gifts between married couples are exempt from capital gains tax and do not need to be declared. Your wife's capital gains tax base cost will be the value of the house at the date of death of the person you inherited it from.

[Deleted User]

Obviously the op has come on to the forum and should be commended having now been made aware of the rules on disposals  between spouses. However, this is the second time in a week where I have seen such a scenario. In the other example, a return for 2020/21 has had to be amended (CGT pages removed). My clients now have to wait for the £28500 CGT to be refunded! No doubt, some kind of query may follow!

I really think that solicitors should be advising clients of CGT exposure or otherwise!

Deano23

Yes I inherited the house after my father died, i have allowed his ex to live in it rent free for the last 5 years so made no money out of it. I gifted the 50% of the house to my wife this year.
We are selling the house. No we have not lived in it as are main residences. No its not let out.
Will my wife cost be the value now and my cost been when i inherited the house.

Jeremy535897

No, each of you has a base cost equal to 50% of the value at the date of death of the person you inherited it from. The gift of 50% to your wife (assuming you are not separated) was exempt.

Deano23

so i only pay the capital gain on my amount do 

Jeremy535897

That's not what I said. If each of you and your wife own 50% of the property, you will both have the same gain, being half the sale proceeds, less half the selling costs, less half the valuation at the date of death. The gift between spouses is not entered anywhere.

Deano23

understand its what  i thought thanks