What Is Capital Tax Please?

[curlygirlies]

Sorry I don't know which section to put this in. My partner and me live in his house which he got from his gran in her will. There is no mortgage. We are getting married next year and he wants to put me on the deeds as joint owner once we are married. A girl at work says if he does this I will have to pay something called Capital Tax. What is this please and is she correct. The house is a small terrace valued around £90,000. Thanks.

[dannyk13]

https://www.gov.uk/browse/tax/capital-gains

[bobbinwales]

Capital Gains Tax if your in UK? Am not sure why your workmate said it would apply in your case

[ToraToraTora]

there is no such thing, I assume you mean Capital Gains Tax?? ... your work friend is talking ***, CGT is not payable for your primary residence and as you will be spouses there is no problem.

[curlygirlies]

Yes England. She says she knew someone who had to pay this tax. I'll take a look at the link thanks x

[THECORBYLOON]

TORATORATORA, could you not just have stated the friend was mistaken rather than using a mangled version of an obscenity?

[AuntPG]

The Tax is called Capital Gains Tax but don't worry because it's not applicable to your situation as you do not pay CGT on gifts from one spouse or civil partner to another. Your partner putting you on the deeds of your home is classed as a 'gift' even if no money changes hands. Some people do have to pay CGT when they dispose of property and shares (gift,sell,etc), its complicated and not relevant to your situation.

[Peter Pedant]

Aunt PG is abolutely right
bang on baby

If he were to transfer it to you before marriage - then he would have to pay tax as mentioned ( I dont know half this thread dont realise this is about CGT) on a notional transfer

The solicitor tells just in case you think it is concealable

and AFTER marriage then THAT transfer is not chargeable ( ya doan pay tax at the point of transfer)

BUT it is on final disposal by both of you.

So if it is worth 90 now, transfer it is worth 120 then WHEN you come to sell at 250 later the GAIN is 250-90 - and NOT 120-90

and has under current legislation to be paid within 30 days BUT the calculation is straightforward and you do it by filling out forms ( for BOTH of you)

[Peter Pedant]

// Am not sure why your workmate said it would apply in your case//

isnt married and not primary residence probably....

[Peter Pedant]

No she is not correct
my answer above is not correct and I have asked for it to be taken out
It is his primary residence
and when he transfers to you after marriage it is a transfer between spouses that does not attract CGT

[Peter Pedant]

mods asleep again - too busy modding non PC threads I suppose

answer at 0843 is wrong - only applies to a house that you inherit whilst living elsewhere ( second house) - sozza AND you keep for a few years. double sozza - must read the question

[curlygirlies]

Thank you for the replies and the link. My work mate knows nothing about Tax I think she was just being annoying.

[Peter Pedant]

yeah really sorry about that one
shouldda read the question more than once

I am a naught naughty boy