House purchase price and date for CGT purposes

CRITCHKFC

When declaring the purchase price for a house which I've bought the share from my ex after a divorce, do I go with the original purchase price and date or the price and date the house was transferred into my sole name?

Jeremy535897

If you used to own the house 50:50, and you acquired your ex-wife's half after the divorce, then your base cost is half of the original cost plus what you paid your ex-wife for her half. If the house has been your main residence throughout, there should be no taxable gain. You don't declare the purchase price anywhere. You include it in the computation of the capital gain, if any, when the house is sold.

CRITCHKFC

Thank you Jeremy, that's very helpful. I've just sold it and need to report a gain as it has not been my main residence. I have been working and living outside the UK (although still been resident for UK tax purposes and completing self assessment) for my job so have been renting it out.  

CRITCHKFC

I do have another question - I can deduct costs for buying and selling from the gain such as solicitors etc - presumably I can do that for both the original purchase and when I bought out my ex? 

Jeremy535897

Have a look at the rules on main residence here:
https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet

You may be able to take advantage of some of the periods of absence allowed.

You can deduct costs of acquisition, enhancement expenditure (as defined in the law), and costs of disposal. Costs typically include stamp duty (on purchase), legal fees attributable to the purchase or sale of the property, and estate agents fees on disposal.