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Capital Gains Tax on house selling

team309
team309 Posts: 1 Newbie
in House buying, renting & selling
Can anyone clarify the following for me?

Lived in house with partner from 1998 until 2005. Then split up and the house was officially valued at £125k. I could only get a mortgage for £98k so he sold it to me for this price.
Moved in with someone else in 2008 and rented out the original house. Then bought another house in 2009. Now I want to sell the original house and it has been valued at £132k.

- In calculating CGT, do I have to use the £98k purchase price or the £125k valuation? This will determine whether I sell it or continue to rent!

Many thanks in advance...

Comments

  • brit1234
    brit1234 Posts: 5,385 Forumite
    Sounds like 28% on £37K. Country needs the tax, pay up.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • gingerwhinger
    gingerwhinger Posts: 72 Forumite
    team309 wrote: »
    Can anyone clarify the following for me?

    Lived in house with partner from 1998 until 2005. Then split up and the house was officially valued at £125k. I could only get a mortgage for £98k so he sold it to me for this price.
    Moved in with someone else in 2008 and rented out the original house. Then bought another house in 2009. Now I want to sell the original house and it has been valued at £132k.

    - In calculating CGT, do I have to use the £98k purchase price or the £125k valuation? This will determine whether I sell it or continue to rent!

    Many thanks in advance...

    What period did you live in the house? If you lived in the house from 2005 and 2008 you need to calculate the gain based on the value now minus the value when you last lived there. And then you need to deduct the £10.1k capital gains tax allowancw. There may be o gain at all
  • gingerwhinger
    gingerwhinger Posts: 72 Forumite
    brit1234 wrote: »
    Sounds like 28% on £37K. Country needs the tax, pay up.

    God it's so annoying when people who know f.a. just have to comment for the sake of it. This is incorrect so ignore this advice.
  • Gwhiz
    Gwhiz Posts: 2,322 Forumite
    Part of the Furniture Combo Breaker
    If the house was rented out in 2008 would the 3 year rule not imply that house would not be liable for CGT as the last 3 years are tax free?
  • gingerwhinger
    gingerwhinger Posts: 72 Forumite
    Gwhiz wrote: »
    If the house was rented out in 2008 would the 3 year rule not imply that house would not be liable for CGT as the last 3 years are tax free?

    Yes - of course. Doh!
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