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Disposal of interest in jointly-owned property

Question:

I recently made a claim for a percentage of my jointlyowned home. My ex-partner (not married) is paying me £71,000 and £38,000 in four years when the house will be sold. How much capital gains tax will I have to pay?

Arthur Weller replies:
If the contract between you and your ex-partner says that you are being paid £71,000 plus £38,000, then £109,000 is your sale proceeds, and you have to use £109,000 in your capital gains tax computation. However, since the proceeds are being received in instalments over 18 months, you have the option of paying the capital gains tax in instalments. See www.gov.uk/hmrc-internal-manuals/capital-gainsmanual/cg14850.

I recently made a claim for a percentage of my jointlyowned home. My ex-partner (not married) is paying me £71,000 and £38,000 in four years when the house will be sold. How much capital gains tax will I have to pay?

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This question was first printed in Property Tax Insider in June 2018.