Advice on calculating CGT, please.

lofidelity

Hello
I'm hoping someone can help with CGT queries. 
We've not had to do it before but thought the HMRC site would be easier to follow. Here goes...
My wife bought her flat in 2002, moved out in 2010 and started renting it out, I went on the deeds in 2021 and we sold it in December 2024.
Her CGT and PRR are pretty straightforward, we think, but mine is tricky. 
Do I record it as a Gift, Bought or Other?

If I record 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 that 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 do I put half of the purchase price my wife paid in 2002?

Or, do I choose Bought, and use all the same details as my wife, as if I'd bought it with her in 2002,  and base it all on the price she paid back then, apply the same PRR, etc.? Another MSE Administrator said I effectively acquire her PRR, her purchase date and her purchase price.

Thanks for any advice you can give.

[Deleted User]

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

lofidelity

[Deleted User] said:

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

Thanks. With PRR, we each get the full amount, we don't split it, unlike the costs of estate agents, etc.?

[Deleted User]

lofidelity said:

[Deleted User] said:

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

Thanks. With PRR, we each get the full amount, we don't split it, unlike the costs of estate agents, etc.?

PRR is calculated using apportionment. 

For example, 

Bought December 2002
Moved out December 2010
Sold December 2024. 

Total ownership period 264 months
Private residence 96 months plus 9 months deemed is 105.

PRR each 105/264 x gain. 

It’s a while since I did this - hopefully someone will confirm your full entitlement to PRR. 

lofidelity

[Deleted User] said:

lofidelity said:

[Deleted User] said:

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

Thanks. With PRR, we each get the full amount, we don't split it, unlike the costs of estate agents, etc.?

PRR is calculated using apportionment. 

For example, 

Bought December 2002
Moved out December 2010
Sold December 2024. 

Total ownership period 264 months
Private residence 96 months plus 9 months deemed is 105.

PRR each 105/264 x gain. 

It’s a while since I did this - hopefully someone will confirm your full entitlement to PRR. 

Thanks for that.

silvercar

It’s a while since I did this - hopefully someone will confirm your full entitlement to PRR. 

https://www.cronertaxwise.com/community/14022023-ppr-transfers/

https://www.taxinsider.co.uk/ppr-change-to-interspouse-transfers-whats-new-ta

lofidelity

silvercar said:

It’s a while since I did this - hopefully someone will confirm your full entitlement to PRR. 

https://www.cronertaxwise.com/community/14022023-ppr-transfers/

https://www.taxinsider.co.uk/ppr-change-to-interspouse-transfers-whats-new-ta

Thanks again, silvercar.

Bookworm105

lofidelity said:

[Deleted User] said:

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

Thanks. With PRR, we each get the full amount, we don't split it, unlike the costs of estate agents, etc.?

it may be semantics but you get PPR as a % of the total time you owned it. Therefore yes it is "full amount" because it cannot be anything else 
You then apply that % to your share of the overall gain so if the overall gain was 120k and you own 50% of the property and have PRR for your entire ownership then your CGT is (120k x 50%) = 60k - (PRR of 60x100%) = 0

Bookworm105

lofidelity said:

[Deleted User] said:

lofidelity said:

[Deleted User] said:

Your last paragraph is correct. 

You each declare half of the sale price, cost price, legal costs and improvements on your individual returns. 2002 is the base dates for both of you. 

PRR is usually calculated in months, not forgetting to add an additional nine months. 

Any gain should be declared and tax paid within 60 days of sale. 

https://comanandco.co.uk/transfer-of-property-into-joint-names

Thanks. With PRR, we each get the full amount, we don't split it, unlike the costs of estate agents, etc.?

PRR is calculated using apportionment. 

For example, 

Bought December 2002
Moved out December 2010
Sold December 2024. 

Total ownership period 264 months
Private residence 96 months plus 9 months deemed is 105.

PRR each 105/264 x gain. 

It’s a while since I did this - hopefully someone will confirm your full entitlement to PRR. 

Thanks for that.

based on the info on your initial thread on the housing board and the fact the eventual disposal is after April 2020 then you will be entitled to claim PRR for the same period as your wife 

prior to 2020 you actually had to be living in the property itself at the date you became co-owner, but that rule has been dropped wef  April 2020