Capital Gains on 2nd rented out home

goalhanger

Question:
2nd home which is rented out and you want to sell it . The home is in joint names . Do you get 2 x annual exemption ?
Thanks, did try the Tax office on the phone but they wanted so much information before putting me through to someone , i gave up......

purdyoaten

goalhanger wrote: »

Question:
2nd home which is rented out and you want to sell it . The home is in joint names . Do you get 2 x annual exemption ?
......

That is correct

CLAPTON

the way it works (in the absence of much detail) is that each person is liable for half the gain

as each person has a cgt allowance then that means in practice the whole deal gets two lots of allowance but that's not how you claim it.

goalhanger

Great. So each person has a show half the gain on their assessment with their own allowance.
Ta,

holly_hobby

During its ownership, has the property ever acted as the primary (main) residence of 1 or both of you ?

Holly

goalhanger

Hello Holly, its been lived in by my parents since 2000. My Mum died in 2012 and Dad is now 87 and this house is a major part of my 'pension' so I need to start thinking about the best things to do. If my Dad went in a home I could rent it out but that doesnt free up any capital so selling is the favourite .Plus selling my own and downsizing so I have a nice pot to live on. I worked out the CGT is going to be about £32000 even using both our CG Allowance.
Phil

CLAPTON

goalhanger wrote: »

Hello Holly, its been lived in by my parents since 2000. My Mum died in 2012 and Dad is now 87 and this house is a major part of my 'pension' so I need to start thinking about the best things to do. If my Dad went in a home I could rent it out but that doesnt free up any capital so selling is the favourite .Plus selling my own and downsizing so I have a nice pot to live on. I worked out the CGT is going to be about £32000 even using both our CG Allowance.
Phil

was the property bought in 2000?
have you ever lived there?

getmore4less

Who owns it?
Who lives in it?

purdyoaten

getmore4less wrote: »

Who owns it?
Who lives in it?

The op has stated that he owns it jointly and I have presumed with his wife but perhaps not? However, it is not clear whether they purchased it or if, at one time, it was owned by his parents and then transferred/gifted to them.

Some clarification needed I believe.

goalhanger

Hi, my wife and i inherited the house in 2000. My parents moved pertty much straight in and pay a peppercorn rent . But I'm getting to the age where I need to think about the future and I need a plan - dont we all ;-)
Phil

purdyoaten

So - the house was inherited, obviously from someone else, and you provided your parents with a home. That clarifies things! Just two exemptions available then. Do not forget to claim the cost of any improvements and the costs of acquisition and potential sale.