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Readers' forum : Down the years

22 May 2018
Issue: 4648 / Categories: Forum & Feedback

Capital gains tax liability on sale of renovated property jointly owned.

My client bought a property in March 1985 for £20 000 and later transferred this into joint names with his wife on 1 April 2008. It was let until November 2013 by which time it was dilapidated. Preparatory work for renovation started in March 2014 when it became apparent that a major rebuild was required involving various planning permissions and building regulation approval. Work eventually started in January 2015 and cost around £240 000. My client and his wife took up occupation in July 2015 when a main residence election was made effective from that date. The current value of the property is £775 000.

My client is now thinking of selling the property which will obviously incur a capital gains tax liability. I have four questions. First is the indexation allowance available on the original transfer from husband to wife? Second what is the date...

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