Capital gains


Written by Ray Coman


Capital gains tax (CGT) is due on any increase in value of an asset from the time of acquisition to the time of disposal. A person resident in the UK is charged to CGT on worldwide assets.

Capital gains are taxable after deduction of the individual's annual allowance, and any capital losses brought forward. Tax is applied to the gain at a rate of 18% to the extent that it falls within the taxpayer's basic rate band, and 28% thereafter.

Consequently, there could be a tax advantage to disposing of a property in a year in which a person's UK income is lower.


#6 Ray Coman, FCCA, CTA 2023-11-18 17:59
Dear Val,

You inherit any actual and deemed periods of occupation from your husband. This means that your taxable gains will be the same as his (although when the tax rates are applied your capital gains tax could still differ.)
#5 Val 2023-11-14 20:10
My husband bought a house in 1969. We married in 2002 and in 2015 we had the house transferred to joint names. The house has been rented out since 1989 when he moved into my home. I have been paying tax on half the rental income since then. We are now going to sell the house do I have any residential allowance even though I have never live in it?
#4 Ray Coman, FCCA, CTA 2021-09-08 12:58
Dear Jane,

You cannot chose to disclaim the spousal exemption, however you could time or plan your disposal so that the base cost is increased for capital gains tax purposes. For instance, if you were still living together, your husband could transfer property to another family member, such as any children, and your child could subsequently transfer it to you. The spousal exemption continues in the tax year of separation, provided you are living together. From what you describe as him being non-resident, it is likely that he is liable to capital gains tax based on market value of the property on the date of transfer.

There is one home per person or per married couple. Therefore if he is transferring his former home, he will probably be exempt from tax on the disposal. On the basis that you are separated and living apart on the disposal date, the spousal exemption would not apply, and you would obtain the CGT free uplift in value desired.

You seem to have a misconception that your husband will not be liable to tax because he is non-resident. This is not the case. Any person is liable to CGT on disposal of UK property. For non-residents, value on April 2015 is used instead of cost for determining taxable gain.
#3 Jane lewis 2021-09-07 21:35
If I jointly own a property with my husband, is it possible for him to actually declare and pay the cgt when he transfers his share to me as part of a divorce settlement, rather than doing it at nil rate, such that I am not liable for the whole amount when I subsequently sell. He is currently non-uk resident, so it would be beneficial for him to make use of 2015 rebasing, pay the cgt, and then I am presumably only liable when I sell in the future for my half and the increase in his half from the time of the transfer.
#2 Ray Coman, FCCA, CTA 2019-07-05 13:12
Ben, I would be pleased to help and have sent you a message directly.
#1 Ben Johnson 2019-07-05 12:04
Dear Sirs,

My wife and I currently own and live in a property in Honor Oak Park and also have a buy to let in Brighton which we plan to move into shortly.

We intend on renting out our London property at least initially but have concerns about our potential capital gains tax liabilities since the property has increased in value significantly since we bought it.

I'm looking for some advice on projected capital gains tax liabilities in order that we can work out when would be the best time to sell.

My number is 07855451219

Thanks and best regards

Ben Johnson

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