CGT Free wannabe

humphreydog

Hello,

this is my first post although I have been a regular guest. S here goes.

I bought a property with my brother in 2001 for 65K and sold it again for 205K in 2006, having owned the property for just under 5 years. We didn't live in it during this time though had it let out.

Once we take buying costs and selling costs from the equation (circa 5K), and capital costs (we installed full central heating system 8K - 2 flats),then remove the 18,400K CGT allowance between us and finally deduct10% for taper relief, we are left with I believe 97.75K which is taxable for CGT.

My questions are?

1: is there anything else we can reduce that I have left out?

2: since he is a higher level tax payer what is the best way to split this cash to reduce the tax bill, or is it too late for that?

I keep thinking I'm missing something, will we really have to give the taxman something inthe region of 35K between us?

all advice and suggestions will be greatfully recieved.

humph

silvercar

Taper relief comes before CGT allowances, so you are left with a 95,900 liability.

Your buying costs will include legal fees, mortgage advisor fees, survey, mortgage arrangement fees.

Selling fees include any mortgage redemption penalty, estate agent fees and legal fees.

I think it is too late to split the ownership. If you had said there were two flats before sale, I would have said sell them in different tax years to gain two lots of CGT allowance.

humphreydog

Many thanks silver car, its ashame about the things we learn until it's too late. But that's life eh!