Capital Gains Tax for married couple.

lofidelity

Hello
My wife bought her flat in 2002, I went on the deeds in 2020, we sold it in 2024. When filling in my CGT form, it asks if I bought it, inherited it, got it as a gift, or other, do you know which I select? And for my calculation, do I do the same as my wife and subtract the price she bought it for, though that was long before she knew me, from the sale price? Or do I subtract its valuation when I became joint owner?
And then we get on to PRR...
Thanks for any help you can give!

Bookworm105

why are you making a CGT declaration?
who has lived in it since 2002?
when was your marriage?
where have you lived since marriage?

there are 2 factors you need to address to get your CGT correct 

1. putting you "on the deeds" implies no money changed hands, so it was a gift from wife to you. All such transfers take place on a "no gain, no loss" basis. ie you acquire your share at her original purchase cost from 2002

2, how much, if any, Private Residence Relief can be claimed by either or both of you to offset the gain since 2002? Whether you inherit any of her PRR (if she has any) depends on two facts:
a) what was the exact date in 2020 that you were made co-owner?
b) who lived there at that date 
CG64925 - Private residence relief: ownership period: spouses or civil partners and legatees - HMRC internal manual - GOV.UK

lofidelity

Thanks.
My wife bought it in 2002 and lived there until 2010 when we moved in somewhere else, from 2010 it was rented out until it was sold in December 2024. We married in 2012.
I became co owner on 4/1/21, when tenants were in.

silvercar

This will help: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64925#:~:text=For%20disposals%20on%20or%20after,at%20the%20beginning%20of%20the

lofidelity

Thanks. 
I'd seen that and was trying to make sense of it. So it looks like my calculations go back to 2002, when my wife bought the flat.
But, where it says
"Additionally, you should allow relief to the transferee for any part of the extended period of ownership in which the property was the only or main residence of the transferor. An example is given below."
does that mean I also qualify for the same PRR as my wife, between 2002 and 2010 when we moved out and started renting it?
Thanks.

sheramber

Did you live in it from  2002?

silvercar

lofidelity said:

Thanks. 
I'd seen that and was trying to make sense of it. So it looks like my calculations go back to 2002, when my wife bought the flat.
But, where it says
"Additionally, you should allow relief to the transferee for any part of the extended period of ownership in which the property was the only or main residence of the transferor. An example is given below."
does that mean I also qualify for the same PRR as my wife, between 2002 and 2010 when we moved out and started renting it?
Thanks.

Yes, effectively you acquire her PRR, her purchase date and her purchase price. 

lofidelity

Thanks, sherambersheramber said:

Did you live in it from  2002?

My wife bought it in 2002 and lived there until 2012, then rented it out. I only lived there for a short time.

lofidelity

silvercar said:

lofidelity said:

Thanks. 
I'd seen that and was trying to make sense of it. So it looks like my calculations go back to 2002, when my wife bought the flat.
But, where it says
"Additionally, you should allow relief to the transferee for any part of the extended period of ownership in which the property was the only or main residence of the transferor. An example is given below."
does that mean I also qualify for the same PRR as my wife, between 2002 and 2010 when we moved out and started renting it?
Thanks.

Yes, effectively you acquire her PRR, her purchase date and her purchase price. 

Thanks silvercar, that's helpful. More helpful than the gov.uk and HMRC sites. 

lofidelity

silvercar said:

lofidelity said:

Thanks. 
I'd seen that and was trying to make sense of it. So it looks like my calculations go back to 2002, when my wife bought the flat.
But, where it says
"Additionally, you should allow relief to the transferee for any part of the extended period of ownership in which the property was the only or main residence of the transferor. An example is given below."
does that mean I also qualify for the same PRR as my wife, between 2002 and 2010 when we moved out and started renting it?
Thanks.

Yes, effectively you acquire her PRR, her purchase date and her purchase price. 

Hello again,
I thought I'd cracked it but...if I record how I got it as Gift and include the date I went on the deeds (2021), it asks what my share of the market value was then and because the market value then was higher than the actual sale value, it calculates I made a loss. If I put Other, it asks when the property was transferred into my name (2021) and how much I paid for my share, which, in reality, was £0, but it doesn't allow £0, so I suppose all I can put is half of the amount my wife paid in 2002. 
Basically, is it better to choose Bought, and use all the same details as my wife, and put 2002, even though I wasn't co owner until 2021, and base it all on the price when she bought it?
Thanks for any advice you can give.

silvercar

lofidelity said:

silvercar said:

lofidelity said:

Thanks. 
I'd seen that and was trying to make sense of it. So it looks like my calculations go back to 2002, when my wife bought the flat.
But, where it says
"Additionally, you should allow relief to the transferee for any part of the extended period of ownership in which the property was the only or main residence of the transferor. An example is given below."
does that mean I also qualify for the same PRR as my wife, between 2002 and 2010 when we moved out and started renting it?
Thanks.

Yes, effectively you acquire her PRR, her purchase date and her purchase price. 

Hello again,
I thought I'd cracked it but...if I record how I got it as Gift and include the date I went on the deeds (2021), it asks what my share of the market value was then and because the market value then was higher than the actual sale value, it calculates I made a loss. If I put Other, it asks when the property was transferred into my name (2021) and how much I paid for my share, which, in reality, was £0, but it doesn't allow £0, so I suppose all I can put is half of the amount my wife paid in 2002. 
Basically, is it better to choose Bought, and use all the same details as my wife, and put 2002, even though I wasn't co owner until 2021, and base it all on the price when she bought it?
Thanks for any advice you can give.

Post on the tax board - https://forums.moneysavingexpert.com/categories/cutting-tax - people on there can probably tell you what numbers to put in what box.