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CGT liability on house sale

Transfer share of property or offset share losses to minimise CGT?

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Client's gain on sale of house they co-own with sister (not primary residence) expected to be £64k net of purchase . Client already maxes their BRT band with £13k salary, rest in dividends. I understand therefore the CGT due will be largely at 40%.

Could sale of loss-making stock market shares be used to offset the gain?

Would it be cost effective for a pre-sale transfer of half the property to their spouse? I believe the spouse would be liable for the full gain (£45k) less their 12k allowance as they cannot offset the property's original purchase cost. As the spouse only has income of £12k, all in dividends, I believe their CGT liability would be mostly at basic rate.

Thanks 

 

Replies (5)

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RLI
By lionofludesch
07th Dec 2019 14:29

40% ???

I don't think so.

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By JDBENJAMIN
07th Dec 2019 14:34

I don't believe this is for a client, as you seem not to know some quite basic stuff about CGT, including the rate at which it is charged! Hire an accountant to review the whole situation and advise.

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By Wanderer
07th Dec 2019 14:45

Spreaders wrote:

Client's gain on sale of house they co-own with sister (not primary residence) expected to be £64k net of purchase . Client already maxes their BRT band with £13k salary, rest in dividends. I understand therefore the CGT due will be largely at 40%.

Could sale of loss-making stock market shares be used to offset the gain?

Would it be cost effective for a pre-sale transfer of half the property to their spouse? I believe the spouse would be liable for the full gain (£45k) less their 12k allowance as they cannot offset the property's original purchase cost. As the spouse only has income of £12k, all in dividends, I believe their CGT liability would be mostly at basic rate.

Thanks 

 


Spreaders
Member Since: 7th Dec 2019

Spreaders, you don't even have a basic understanding of CGT. Stop pretending to be an accountant with a client and hire one.

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RLI
By lionofludesch
07th Dec 2019 14:48

Well, it made me chuckle, anyway.

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By carnmores
07th Dec 2019 16:36

i think you could save quite a lot of CGT possibly thru a deed of gift , take some professional advice

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