Capital Gains tax calculation - pointers please

Paul_Herring

Briefly - can anyone provide any pointers on how I figure out how much CGT might be due?

House bought June '94 (unsure how much for, but was bought outright with no mortgage - no idea how to find this out, http://houseprices.landregistry.gov.uk/ only goes back to '95 and title deeds don't mention it) with me and my mother tenants in common (1/2 each) - we both move in same month.

September '98, I move out because of job elsewhere in the country

April '05, my mother moves out to go into care home

Some time between '05 and '12, the house was rented out sporadically (and income tax paid on the rent received) - roughly 5 years during the period.

April '14, my mother dies, I inherit the remainder of the house

June '15, house sold.

No inheritance tax was due on my mother's estate due to it being well below the IHT limit.


https://www.gov.uk/tax-sell-property/work-out-your-gain isn't much use to me it seems, and http://www.theguardian.com/money/2014/feb/12/how-calculate-capital-gains-tax-sell-home only covers part of my situation.

silvercar

Firstly, sorry for your loss.

On your half the property. 21 years of ownership, exemption for the 4.25 yrs you lived there and the last 18 months of ownership. so exempt for 5.75 of the 21 years, apply that as a fraction to the total gain. Also letting relief (google it) which is worth upto 40k for the time it was let.

The half you inherited from your mother is an easy calculation, it is the gain since the date of death, so only the gain if any since April '14.

(What I am not sure about is that you may be able to claim the exemption for the last 18 months of ownership on this part too.)

Once you have your total figure, you also get a CGT allowance of about 11k to deduct. Then you pay CGT at 18% or 28% depending on your income.

silvercar

Thanks for clearing that up.

OP has never occupied mother's 50% whilst OP himself was an owner of that 50% so as you suspected his claim for PRR on that 50% would not be allowed

I wasn't sure if OP would be considered to have inherited half of all of it or all of half of it.

Has implications for anyone who lets a shared ownership property out and staircases their share up whilst it is let.

Paul_Herring

Thanks...

silvercar wrote: »

Also letting relief (google it) which is worth upto 40k for the time it was let.

That's the pointer I needed - found this as a result, which appears to cover the bits I'd not found out about - the rest of your post confirmed the rest:

http://www.abacni.co.uk/wp-content/uploads/2012/05/PPR-and-Letting-Reliefs-Helpsheet.pdf

Seems there may not be any CGT due on the property (depending on how much it finally sells for - I don't have high hopes of getting a great deal for it.)