Capital Gains Tax

freddie2

Wonder if anyone can help!
My husband ( then partner) bought a house in 2010 with a mortgage in his name. We both lived in the property until 2013 when we bought and moved into a property which we bought jointly. At that point we remortgaged the original property to a buy to let mortgage in joint names and the deeds were transferred to joint names. We have let out the property since but have now sold it. How does capital gains tax work for me??

TheGreenFrog

Were you married to your husband when the original property was transferred into your joint names?

Nomunnofun1

freddie2 said:

Wonder if anyone can help!
My husband ( then partner) bought a house in 2010 with a mortgage in his name. We both lived in the property until 2013 when we bought and moved into a property which we bought jointly. At that point we remortgaged the original property to a buy to let mortgage in joint names and the deeds were transferred to joint names. We have let out the property since but have now sold it. How does capital gains tax work for me??

It works exactly as it does for your husband. Transfers between spouses incur no capital gains liability. 

You are deemed now to have been joint owner of the property since 2010 and are subject to half of any gain. 

If you provide more details of figures (purchase and sale price) and dates (month and year) we can help you further. Hopefully you both are aware that any capital gain should have been declared by each of you and any tax due paid within 60 days of completion. 

Mortgages, by the way, are entirely irrelevant for CGT purposes. 

https://www.gov.uk/report-and-pay-your-capital-gains-tax

freddie2

Ok.
Bought property in May 2010 for 207000.
deeds transferred to joint names in May 2013
Married in Dec 2017
Sold April 2025 ( completing on Friday!)  for 290000k

freddie2

TheGreenFrog said:

Were you married to your husband when the original property was transferred into your joint names?

No we weren’t 

Keep_pedalling

freddie2 said:

Ok.
Bought property in May 2010 for 207000.
deeds transferred to joint names in May 2013
Married in Dec 2017
Sold April 2025 ( completing on Friday!)  for 290000k

It sounds like you never lived in it at the same time you were an owner, so your calculation will be based on the value of the house on May 2013 and you will not be able to claim any PRR on the gain on your share. 

Nomunnofun1

TheGreenFrog said:

Were you married to your husband when the original property was transferred into your joint names?

Well spotted - didn’t pick up on ‘then partner’

Bookworm225

freddie2 said:

TheGreenFrog said:

Were you married to your husband when the original property was transferred into your joint names?

No we weren’t 

as your marriage was 4 years after the transfer of ownership then technically you cannot acquire your share at his original 2010 cost since that rule only applies to spouses at point of transfer 

technically your gain should be calculated from its market value in 2013 to sale price  whereas his will be from 2010 purchase price to sale price 

at the point of transfer in 2013 it was his main home (so his gift of a share in property to you has no CGT implications for him at that point of disposing of that gifted share) but you had never lived in it whilst an owner of it, therefore you cannot claim any private residence relief 

His PRR calculation (measured in months, not years) will reflect time period he lived there plus the "final" 9 months of ownership to give a % of the total ownership time which gets full relief from CGT for his share. He also get his CGT personal allowance (£3k)

your calculation will be on the gain 2013 - date of sale. You will not get any reduction other than your personal CGT allowance (£3k)

You will need to obtain a 2013 valuation that will stand up to HMRC scrutiny (if they check it). Pay a chartered surveyor holding the valuation qualification? 

silvercar

When you bought the new property was there extra SDLT to pay, as he was increasing the number of properties he owns? You may have also had some extra SDLT on the BtL as it would have been a second property you were buying in to. 

Partly curiosity and partly if it was all structured in some way to avoid extra SDLT and future CGT concerns.

Bookworm225

silvercar said:

When you bought the new property was there extra SDLT to pay, as he was increasing the number of properties he owns? You may have also had some extra SDLT on the BtL as it would have been a second property you were buying in to. 

Partly curiosity and partly if it was all structured in some way to avoid extra SDLT and future CGT concerns.

higher rate SDLT was introduced on 1 April 2016. He (they) purchased the new home in 2013 so it is irrelevant 

in respect of OP's ownership of the BTL exact timeline required to know if there was an o/s mortgage on the property at point she received the gift and therefore whether there was any chargeable consideration given and received for SDLT purposes at that exact point in time. It would be at standard rate, if applicable.

freddie2

Thank you all
will check exact dates and post them asap