Working out capital gains due

WeeMummy

Apologies if this has been covered before but just wondered if anyone had any tips on working out how much capital gains tax is due on the sale of a property.

1) Was husbands property before I met him.

2) I moved in a co-habited a few years later.

3) We then moved out and bought somewhere together and rented property out.

4) Subsequently married (we live in Scotland so laws around cohabiting a bit different I think!) and bought a house together.

5) Sold flat last year at a profit. Now need to work out how we work out capital gains tax.

Assuming it is somewhere along the lines of:

Value at sale - value when it was rented out = profit

However, we will have some deductions ie 2 x tax allowance and maybe other things.

Appreciate this is long and very dull ! Covering well over 15 years but even some tips to websites which might help would be useful.

Many thanks,

M

nomunnofun

Can't believe that you would simply look for a website for something as important as this - potentially very expensive if wrong figures/reliefs claimed.

Some details are required.

Was flat always in your husbands name?
What was the total period of his ownership?
How much did it cost him?
How long was it his main residence i.e. before rented out?
What was the sale proceeds?

Dates would be preferable and someone here will work it all out for you.

Your assumption below is pretty far out, I am afraid.

Assuming it is somewhere along the lines of:
Value at sale - value when it was rented out = profit

You cannot get two CGT allowances if the property is only in his name.

WeeMummy

Thanks for your response. I think it tells me all we need to know ie we need to seek professional advice. I was only really after some pointers and perhaps some suggestions where to look for some help.

However, it amazes me how some people can hide behind cyber space and be really rather unpleasant in responding to something like this.

'Can't believe you are looking on a website for something so important'. Well I am as I thought there might be someone with something worthwhile to say !

Obviously not ! Did your mother never tell you if you can't say anything nice then don't say anything at all.:(

CLAPTON

WeeMummy wrote: »

Thanks for your response. I think it tells me all we need to know ie we need to seek professional advice. I was only really after some pointers and perhaps some suggestions where to look for some help.

However, it amazes me how some people can hide behind cyber space and be really rather unpleasant in responding to something like this.

'Can't believe you are looking on a website for something so important'. Well I am as I thought there might be someone with something worthwhile to say !

Obviously not ! Did your mother never tell you if you can't say anything nice then don't say anything at all.:(

open forums have various views


however if you wish to post up your details people will show you how to work out the likely cgt


even if you then decide to get professional advice you will know the general approach.

the details needed are these

purchase price
sale price
cost of purchase (solicitor etc.)
cost of sale

year and month he bought the property
year and month he moved out
year and date of sale

year and month he started renting it out
year and month he stopping renting it out

confirm he was the sole owner all this time

any major improvements (not maintenance)


in many cases, for modestly priced properties the resulting cgt is zero

nomunnofun

WeeMummy wrote: »

Thanks for your response.
Obviously not ! Did your mother never tell you if you can't say anything nice then don't say anything at all.:(

Perhaps I could have been more tactful and appreciated more your new status on the forum. My apologies - I would hope that a search of my other postings wouild lead you to the conclusion that I really was trying to help. However, I stand by my point regarding looking up some information on the internet (I did not mean this website and assumed that you meant websites in general!) in an area where the wrong decisions could cost you a lot of money. The last thing anyone wants is an avoidable HMRC query.

You will note that Clapton has, more or less, asked you the same questions that I did, with more detail. Some figures and I would be confident that you will leave this thread knowing exactly where you stand and how much your other half will be liable to pay in CGT, if any.

WeeMummy

Just to complete the thread. We spoke to an accountant who carried out the work for us. And thankfully no CGT payable !

nomunnofun

WeeMummy wrote: »

Just to complete the thread. We spoke to an accountant who carried out the work for us. And thankfully no CGT payable !

Always good to hear how things worked out, especially when the result is good!