We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Quick Capital Gains Tax Question
berneslai
Posts: 96 Forumite
Hi,
I'm currently looking at turning my principal residence into a buy-to-let - my partner and I have lived there for 3 years but now live in a flat.
This house was purchased with a joint mortgage - on sale, does that mean both myself and my partners CGT allowance will count towards it? Similarly, I'm a higher rate tax payer, my partner is not - how is the CGT calculated?
If anyone could give me an example of a house purchased at £130k and sold at £185k, I'd be most appreciative.
Bernie.
I'm currently looking at turning my principal residence into a buy-to-let - my partner and I have lived there for 3 years but now live in a flat.
This house was purchased with a joint mortgage - on sale, does that mean both myself and my partners CGT allowance will count towards it? Similarly, I'm a higher rate tax payer, my partner is not - how is the CGT calculated?
If anyone could give me an example of a house purchased at £130k and sold at £185k, I'd be most appreciative.
Bernie.
0
Comments
-
Can anyone help?0
-
I am not an expert, but we did this with out flat so I will tell as much as I can. If it is jointly owned, you can both claim your CGT allowance when it is sold. Also you get tax relief for the time when it was your principal residence, and then a further three years grace as well.
After that it gets complicated, and the various forms of relief depend on when you bought it, why/where you moved and for how long, etc. But there are also expenses you can offset against that tax when you sell it. The upshot being that usually a canny accountant should be able to keep the tax bill pretty low.
Edited to add you might find this http://www.hmrc.gov.uk/helpsheets/ir283.pdf useful from the inland revenue site.When I had my loft converted back into a loft, the neighbours came around and scoffed, and called me retro.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards