Capital Gains Tax Question from sale of second house

Iiyama

00ec25 wrote: »

given the lack of knowledge shown in your first post I very much doubt you have yet understood what is meant by "improvement"

whilst 5K on a 93K house is a large %, it also is not too big to be simply repairs, redecoration, and "refurbishment" - none of which create a new "something" that was not there before, and so are not capital costs

if it helps, going on the rest of your figures:
gain 93 - 45 - 2k costs = 46,000 gain

46 - 12,000 personal allowance (*) = 34,000

total "income" for the year 27,000 + 34,000 = 61,000
higher rate tax bracket for 19/20 is 50,000

so
CGT @ 18% 50-27 = 23,000 @ 18% = 4,140
CGT @ 28% = 61-50 = 11,000 @ 28% = 3,080

total CGT payable = 7,220

* Note the idea that your wife can gift you a share immediately before selling is extremely risky as when / if the HMRC computer spots that the transfer will be disallowed under settlements legislation as its only purpose was to avoid tax. She would have had to made you an owner long before sale, and ideally whilst your and her would then end yup splitting the rental income as well to evidence the split was not done purely with an eye on selling

Thank you for taking the time to look at my figures and comment. The improvment cost was a full damp proof course a few months ago. I thought that was reasonable to include. The possible tax figure you give is better to swallow than the tens of thousands we predicted.



Yes i have very little knowlage on this matter and appreciate all advice given too. We wont be going down the gift to me route.

00ec25

Iiyama wrote: »

Thank you for taking the time to look at my figures and comment. The improvment cost was a full damp proof course a few months ago. I thought that was reasonable to include. The possible tax figure you give is better to swallow than the tens of thousands we predicted.

100% certain not a capital cost
you may not have had one before, but it is still not capital

Iiyama

00ec25 wrote: »

100% certain not a capital cost
you may not have had one before, but it is still not capital

Thanks for clarifying.

Iiyama

Thank you to everyone for the advice. We have arranged for a retrospective valuation and seen an accountant. Feeling more settled now thanks to this great forum.