CGT property where joint ownership then buyout

Individual purhased house jointly with partner. Some years later he bought his partners share.

Didn't find your answer?

Individual purhased property jointly with partner. Some years later he bought his partner's share. He now wishes to sell the property. Is the whole of the buyout cost simply added to the acquisition cost when computing CGT - as if it is an enhancement. Or should 2 separate CGT computations be made for the 2 'bits' of the property?

Replies (4)

Please login or register to join the discussion.

By johngroganjga
17th Sep 2019 16:31

It’s one computation.

Thanks (0)
Replying to johngroganjga:
avatar
By ted.henderson
17th Sep 2019 18:17

Thanks.

Thanks (0)
By ireallyshouldknowthisbut
17th Sep 2019 18:37

Edited

Computationally I have always approached these as two seperate sales, treating the first share separately to the second share.

For PPR relief this might be useful

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64930

Thanks (0)
Replying to ireallyshouldknowthisbut:
avatar
By ted.henderson
17th Sep 2019 22:41

Thanks. I will study the manual and seek a definitive answer from HMRC if necessary.

Thanks (0)