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Captial Gains help - selling property
A_little_stressed!!
Posts: 2,068 Forumite
My friend bought a flat in October 2003, Cost £55,000 lived there with flat mate til Nov 2005 when he bought a house for him & his partner. Cost £137,000, probably now worth £165,000. (but he's not thinking of selling the house yet)
His flat mate stayed on at the flat rent free and paid all the bills, council tax etc. The flat mate has now moved out, he wants to sell the flat valued at £125,000.
Where does he stand in regards to capital gains?
His flat mate stayed on at the flat rent free and paid all the bills, council tax etc. The flat mate has now moved out, he wants to sell the flat valued at £125,000.
Where does he stand in regards to capital gains?
I'm getting older, and lifes getting harder!:mad:
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NO CGT to pay for the time it was his home and the last 3 years of ownership. Provided he sells before Nov 2008 there will be no CGT to pay.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Fantastic! Thank you for your help, he will be very happy.
If HMRC try to look into it will they need any proof he lived there? He was never on the electrol role, nore did he have any credit cards etc and I think the council tax bill was in his mates name becuase he would be more reliable to pay it on time!
Also will he be liable to pay capital gains on his house that he lives in now if he sells within the next year? (Owning it for 2years +)
I'm sorry if these are really stupid questions, but he's been told so many things by different people, no-one seems to know how it works so he's asked me to help out and it confuses me just as much!I'm getting older, and lifes getting harder!:mad:0 -
Also will he be liable to pay capital gains on his house that he lives in now if he sells within the next year? (Owning it for 2years +)
Not if he has lived in it as his PPR for the whole time.If HMRC try to look into it will they need any proof he lived there?
Depends if they are suspicious. Proof could be utility bills. Of course the lack of "evidence" that he has lived somewhere else would help.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
So when the flat is sold he doesn't have to send any forms or anything to HMRC.
ThanxI'm getting older, and lifes getting harder!:mad:0
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