We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Capital gains tax on property bought under market value
stacey4857
Posts: 34 Forumite
We purchased our property from our landlord in March 2014 for £125k, the valuation was £160k. We are planning on selling the property next year (2016) as we are expecting our third child (2 bed flat) and we would like to know if we will be subject to CGT when we sell? The current market value is roughly £250k, the house prices have sky rocketed since last year. We have lived in the property for 8 years, 2 as the home owner and it's been our only home.
0
Comments
-
You don't pay CGT when you sell your only or main home so you'll be fine.0
-
Your landlord was liable for CGT on the £160k less the price paid/value at the point it was first let, so I wonder if he paid his CGT?
As Pixie said, you get "PPR" relief, CGT = £0.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Your landlord was liable for CGT on the £160k less the price paid/value at the point it was first let, so I wonder if he paid his CGT?
As Pixie said, you get "PPR" relief, CGT = £0.
Landlord and tenant weren't connected persons so the consideration received by the landlord is the base cost for CGT purposes (AFAIK).0 -
Thanks guys, I thought this was the case but I was worried that we would be seen to of bought it to make a gain which isn't the case as we either bought it or looked for somewhere else to live.0
-
stacey4857 wrote: »Thanks guys, I thought this was the case but I was worried that we would be seen to of bought it to make a gain which isn't the case as we either bought it or looked for somewhere else to live.
It's your primary residence.
That's what you bought it for, regardless if there was a quick profit or not.0 -
Sorry, I thought it was always market value for CGT, consideration for SDLT.TrickyDicky101 wrote: »Landlord and tenant weren't connected persons so the consideration received by the landlord is the base cost for CGT purposes (AFAIK).I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
How would you assess market value if not the price paid for it? Connected persons legislation is a special casekingstreet wrote: »Sorry, I thought it was always market value for CGT, consideration for SDLT.
0 -
Halifax Bank reckons property prices have risen less than 10% in the last 12 months, prices in your street seem a bit frothy to rise over 50% .0
-
Halifax Bank reckons property prices have risen less than 10% in the last 12 months, prices in your street seem a bit frothy to rise over 50% .
I asked for an opinion on CGT not on property prices in my street, can you answer my original question or are you just going to question my property price? And because they seem 'a bit frothy' have a look on Rightmove and search Eltham (London) I'm sure that will put your mind at ease.0 -
Personally I would sell now while prices are a little frothy on the outskirts as all the froth is fast vanishing in central London.
By the way what did you do to add value to property to double its value or is it all froth. By the way Rightmove prices are the most inaccurate, they are initial asking prices and don;t show price changes of those previously listed.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.3K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards