CGT on buy to let after purchase of ex share

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corktim

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Hi all

I'm baffled by this so any help is appreciated!

Bought a house with my now ex in 2004 for 270k, we both lived there and in 2006 I bought her out for 50k with value of the house then 350k. It was rented from then on and worth about 400k now.

Can someone tell me how I calculate CGT and what values to use?

Thanks!!
 
You should get professional advice on anything non-standard like this.

The 50k you bought ex out for is irrelevant. I assume it was 50k plus taking on the mortgage? It's the market value at the time if its not an arms length transaction - you don't say if 'ex' means ex-wife or ex-girlfriend.

So it cost you 310k (135k in 2004 plus 175k in 2006), and as you lived in it for 2 years, 3/19ths of the gain is exempt from CGT. Adjust for all you cost of buying & selling.

One could argue it should be treated as 2 separate assets; it would mean that the '2nd half' of the house would not be exempt from CGT. The difference in tax is less than 1,500 so I can't see anyone getting too caught up in it.

As I said, get professional advice if you don't know.
 
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