Capital Gains tax

goalhanger

I wish I had collected all my peppercorns now - I would be a rich man....
I am not on high rate tax , but still annoying having to pay out more than my gross annual earnings .....

xylophone

"AFFLUANCE"

Affluence?

Better than "effluent" I suppose...:D

John_Pierpoint

Originally Posted by goalhanger
Yes an inheritance and we didn't want to sell it so we asked my parents if they wanted to live there for minimal rent. Been 12 years now......

ceeforcat wrote: »

So I am correct in thinking that the inheritance was from someone other than your parents i.e. they did not gift the property to you - I understand now.

Be a little bit careful of this situation. Though from what you say, your arrangement is indeed a normal [shorthold?] rental agreement.

I had the task of selling a house in which an elderly relative paid £1 per year as rent.

Needless to say by the time she died the place was in need of some maintenance before it was sold.
During the year it took to sort out the estate and improve the curb appeal of the house, there was something of a property boom.

I managed to get HMRC to agree that the value at death was subject to IHT, because the deceased was really the beneficiary of an interest in possession trust, and the increase in value in the last 12 months was subject to CGT in the hands of the beneficiaries of the original owner's will some 30 years earlier.

Such an outcome might not be what you would want?

mojjie

sue_sue wrote: »

Hi, thanks for this info but it was all not needed, letter today charge of £20 pound something, will happily pay that

Are you sure it was HMRC. Firstly for a CGT enquiry they will not ask you for food bills only bills that prove your residence (an income tax enquiry might to establish means but unlikely). Secondly there is no charge that low. For the CGT you either prove that there was enough relief in which case enquiry closed with no tax to pay or penalty (outside chance of a failure to notify chargeability being slapped on you which is more than £20) or they will calculate your tax liability, any penalty and interest due. The enquiry process is quite long winded either way.

goalhanger

OK, i,ve been thinking , and yes it was hard ...
Is there any benefit in the fact that the property was rented out and getting some letting benefit for that ?
Or is there any way to let my son rent/buy the house which could reduce my CGT bill ?
Or am I going to have to sell my own house and move if for a year before it get sold off ?
Thanks

00ec25

goalhanger wrote: »

OK, i,ve been thinking , and yes it was hard ...
Is there any benefit in the fact that the property was rented out and getting some letting benefit for that ? It was not let on commercial terms
Or is there any way to let my son rent/buy the house which could reduce my CGT bill ? would immediately crystalise the CGT gain payable by you
Or am I going to have to sell my own house and move if for a year before it get sold off ? provided you sell it within 3 years then you will get a maximum of 3 years relief if you genuinely live in it
Thanks

comments above

goalhanger

Thanks for the info. Looks like i'm pretty stumped - which I suppose is exactly what Mr Taxman wants. How many times does he want to tax your money ! I'm sure if I was a big company i'd find a way round this .

John_Pierpoint

goalhanger wrote: »

Thanks for the info. Looks like i'm pretty stumped - which I suppose is exactly what Mr Taxman wants. How many times does he want to tax your money ! I'm sure if I was a big multi-national company I'd find a way round this .

Then you would control an empire bigger than many sovereign states and able to pick and choose your assets world wide. Not be stuck in an off shore island, lumbered with depleted natural resources, a semi educated workforce that thinks the world owes them a living, administered on the commands of a bunch of professional politicians, facing a massive deficit and prepared to sell their granny if the price is right??

What is more your empire would be "wired" and interconnected and not diverted by silly discussions of political correctness.

goalhanger

I can fully understand the people that go to live in a commune where they don't use money , just old fashioned bartering for services etc .
I work for a multi-national and I have to pay up front for my own travel and then claim it back . So I think someone else gains from this , but not me. If I had a back bone i'd say no-way but I suppose us little people are really grabbed by the short and curlies ;-(
In my middle age all I want now is to retire to a little cottage and grow my own veg but I suspect I will be taxed on my cabbages !

John_Pierpoint

If you keep bees, HMRC are likely to try to make a test purchase.