Cgt

Sparky29

dunstonh wrote:

Oh dear, you are in for a bit of a shock then when it comes to selling your second property then. I hope you realise that you will be paying upto 40% tax on most of the increase in value.

I rent out my property because work commitments mean I have to move around the country every 3 years so I am living in subsidised rented accomodation. My property is in joint names so I get to use my wifes capital gains tax allowance as well so CGT is not a problem. If moneytalks has bought the property with a partner he will be in the same boat I presume. Is this the case?

PoorDave

Sparky29 wrote:

Am I missing something? If you have not rented it out how is it an investment property?

I rent out a property and you do take into account the interest paid on your mortgage on your self assessment but I don't think you are a landlord.

As far as I know if it is just a second home (I presume thats what you mean) and the tax man has not been involved it is just a normal house sale which does not involve CGT or everybody will pay CGT every time they moved house. Even Gordon Brown hasn't come up with that tax, YET

Bought for £40k, selling for £80k. Sounds like a good investment to me!

gallygirl

Bought BTL 8 years ago, had same tenant 5 yrs then son took over. Was far too soft & let him run up large arrears - ended up getting ccj against him. Stress of whole thing caused OH & I to split up (all my fault, shouldn't have been so soft etc) and I moved into property in March. Question is, if we get back together (which is possible) would I be exempt from CGT (BTL in my name only).

Thanks peeps.

Ian_W

Ali,
As you've lived in it as your PPR the time you lived in it + the last 3 yrs of ownership will be exempt. So if you've owned for 6yrs and sell as soon as you move out about half you gain will be exempt and you'd also be able to claim taper relief before applying your £8,800 personal CGT allowance.

Details at:
https://www.hmrc.gov.uk/pdfs/2003_04/capital_gains/ir283.pdf