Capital Gains tax avoidance

terryw

weekendwarrior wrote: »

snip

I'm not married, unfortunately

Count your blessings, O Weekendwarrior! You are indeed a fortunate man regardless of marginal savings on CGT!

says
terryw (trying hard not to let Mrs terryw see this reply)

weekendwarrior

terryw wrote: »

Count your blessings, O Weekendwarrior! You are indeed a fortunate man regardless of marginal savings on CGT!

says
terryw (trying hard not to let Mrs terryw see this reply)

Ha Ha, I knew I should of put " I am not married, unfortunately for tax purposes"

She might make me marry her one day :eek:

Money_Grabber13579

Is capital gains not index linked? I mean is the original purchase price not adjusted for inflation, and so this would make the CGT burden less?

terryw

Money_Grabber13579 wrote: »

Is capital gains not index linked? I mean is the original purchase price not adjusted for inflation, and so this would make the CGT burden less?

CGT is no longer index-linked hence 18 per cent rate.

terryw

Money_Grabber13579

terryw wrote: »

CGT is no longer index-linked hence 18 per cent rate.

terryw

Ah. Thanks, haven't studied CGT yet!

saintalan

I bought a property in 1998 and lived in it for 9 years, I then moved into a property I don’t own and have let my property for the last 2 years.

My original intention was to let for 3 years to maximise the CGT benefits at the time. Can anybody give me a quick update to how I stand now we have the base 18%.

Happy to do the digging if someone can point me in the right direction. I just had a look at HMRC but couldn’t find the relative info.

Cheers

Alan

saintalan

saintalan wrote: »

I bought a property in 1998 and lived in it for 9 years, I then moved into a property I don’t own and have let my property for the last 2 years.

My original intention was to let for 3 years to maximise the CGT benefits at the time. Can anybody give me a quick update to how I stand now we have the base 18%.

...

http://www.landlordzone.co.uk/tax/capital-gains-tax.htm

Found the above, which helps a lot.

If I read it correctly, I should be OK for NO CGT for another year i.e. (9yr PRR + 3yr)

After that, I would basically need to watch that:

the average annual gain over the whole period (whatever that may be) * (Years of ownership -12) did not exceed £40k max Letting relief plus any available annual Personal CGT AEA relief before paying CGT.
Any taxable gain would then be @ 18%. Is that correct or is it charged at income under certain circumstances?

Many Thanks

Alan