Capital Gains Tax

riviera_2

I would be grateful if anyone could give me any advice regarding capital gains tax and the cgt allowance.
Say myself and my girlfriend purchased a property for £115000, spent £7000 on doing it up, fees etc and sold it for £140000. Take off estate agents fees and solicitors costs totaling £3500 leaving a gross profit of £14500.

Would we be able to use both of our cgt allowances for the year against that profit and if so how does that work.

Thanks

gus

Hi

Assuming the profit is chargeable to CGT (not part of a trade) then if you buy and sell the property in joint names then yes you can use both of your annual exemptions (currently £8,200 each). The gain will be reportable to the Revenue normally on a tax return and any tax paid on 31 jan following year of gain.

hope this helps

bridiej

Moving this into Cutting Tax as more relevant and you should get more replies.

Bridiej