Help with Capital Gains Tax - HotUKDeals
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Help with Capital Gains Tax

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When my partner and i met we were fortunate enough to have our own places so moved into one and rented the other out. Now we are looking to sell so our ever expanding family can have a big house. How… Read More
Markd Avatar
7y, 11m agoPosted 7 years, 11 months ago
When my partner and i met we were fortunate enough to have our own places so moved into one and rented the other out. Now we are looking to sell so our ever expanding family can have a big house. However im looking at being whacked for capital gaims tax. Is there any way around it? Its not that i dont pay my way its just i want the money for my family rather than give it to the government. Money i feel ive struggled for and can enjoy. Any advice would be greatfully received.

Sorry that should read my wife rather than partner,
Markd Avatar
7y, 11m agoPosted 7 years, 11 months ago
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#1
Best contact your MP. They seem to be the experts...
#2
WoolyM
Best contact your MP. They seem to be the experts...


was just going to write that:whistling:
#3
i dunno hon, i cant help with this question, i hope you manage to find a way xx
#4
one of you move back in! then sell it, then it would be your main home, no capital gains tax. I think the term is flip!! . there is a limit of I think it is £10,000 each per year capital gains, before tax is paid. I hope this helps
#5
I'm no expert but it depends one whether you and your partner are now married. If you are then the married home is considered the main residence and capital gains would apply to the second home. However if you are not married then one of you could move back in so it becomes your main residence.

The other thing to bear in mind is that CGT is only applicable on the growth in value of the property. So if I am right if you bought the house 3 years ago for £170K and it is now worth £200k then the increase in value is £30k, however because you don't have to pay tax on the first £10k per year, spreading the £30k over the 3 years means you wouldn't have to pay CGT as you are inside your allowance per year. Stops for breath.

As you rented the property you probably have to take the income from the rent (any profit made) into account as well. However you may be able to offset any improvements made to the property against any profit made. Given the drop in property prices you may find you haven't made a massive amount of money on the house.

If in doubt speak to an account or tax advisor or CAB, it cost me £90 for about 20 minutes of their time but was worth it..

Hope that helps....
banned#6
Have you been taxed on the income generated by rent ?
#7
paulgee31;5541567
I'm no expert but it depends one whether you and your partner are now married. If you are then the married home is considered the main residence and capital gains would apply to the second home. However if you are not married then one of you could move back in so it becomes your main residence.

The other thing to bear in mind is that CGT is only applicable on the growth in value of the property. So if I am right if you bought the house 3 years ago for £170K and it is now worth £200k then the increase in value is £30k, however because you don't have to pay tax on the first £10k per year, spreading the £30k over the 3 years means you wouldn't have to pay CGT as you are inside your allowance per year. Stops for breath.

As you rented the property you probably have to take the income from the rent (any profit made) into account as well. However you may be able to offset any improvements made to the property against any profit made. Given the drop in property prices you may find you haven't made a massive amount of money on the house.

If in doubt speak to an account or tax advisor or CAB, it cost me £90 for about 20 minutes of their time but was worth it..

Hope that helps....

Sound advice:thumbsup:
banned#8
get a valuation as the value may well be less than what you thought and near what you paid so CGT wont apply.
#9
Thanks, thats a great help

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