Capital gains tax question

CazRock

Hello all, I am new to this and also new to the capital gains area. I have a buy to let property which is in joint names with my partner (different surnames). We are selling it for over £250k and the difference between the mortgage and the profit will be around £80k before any fees from the sale are removed. SO maybe arounf $70k profit after expenses...

We have been hearing a lot about capital gains tax.

However...can we cash gift to our daughter to avoid paying any tax or some of it?

What is the amount we would have to pay on a £70k profit?

Is there any advice you can give us on how we can reduce the CGT? I am not working and my partner is currently on a low income.

thank you in advance

CLAPTON

assuming that you never lived in the property the profit is based on

selling price less buying price less buying and selling costs less any improvements


so what was the buying price?


the mortgage has nothing to do with cgt

cte1111

You will each have a CGT allowance of £10,900 (for 2013/4). You split the profit between the 2 of you, then take off the allowance.

The leftover amount will then be taxed. As you're not working, then you are likely to also have some / all of your personal allowance left (£9,440 for 2013/4). Your partner may also have some of his personal allowance. The remainder will be taxed at 18% (or possibly some at 28% if the total gain is very large.

00ec25

CazRock wrote: »

However...can we cash gift to our daughter to avoid paying any tax or some of it?

the cash gift would come after your CGT liability has been assessed and any CGT due has been paid so no it would not avoid/evade your tax liability

zygurat789

cte1111 wrote: »

You will each have a CGT allowance of £10,900 (for 2013/4). You split the profit between the 2 of you, then take off the allowance.

The leftover amount will then be taxed. As you're not working, then you are likely to also have some / all of your personal allowance left (£9,440 for 2013/4). Your partner may also have some of his personal allowance. The remainder will be taxed at 18% (or possibly some at 28% if the total gain is very large.

Are you saying any unused personal allowance will reduce the amount liable to CGT?

purdyoaten

cte1111 wrote: »

As you're not working, then you are likely to also have some / all of your personal allowance left (£9,440 for 2013/4). Your partner may also have some of his personal allowance. The remainder will be taxed at 18% (or possibly some at 28% if the total gain is very large.

Words fail me!


Sorry zygurat789 - didn't get as far as your post!

le_loup

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Ah! But can you beat that?

purdyoaten

Fifty (ish) thanks per post! Can anyone? Impressive.

Must be a lot of competition fans on here!

https://forums.moneysavingexpert.com/discussion/4892440

zygurat789

le_loup wrote: »

Thanked 156,907 Times in 3,257 Posts

Ah! But can you beat that?

Its quality not quantity that matters.