CGT - discounted house purchase

BhavinM

Hi all,


Apologies if this may have been asked before.


I am currently thinking to sell a second home I currently own. Reason being is for my wife and I to purchase a new property, the additional stamp duty is unfortunately making it completely unaffordable so reluctantly are making inquiries for its sale. I purchased the house off my father a few years back to help me get on the property ladder at a significantly reduced price, which now has become a slight burden from a tax view (Stamp Duty namely). The below details out the financial situation;


£130,000 - House Valued at time of purchase
£95,000 – Property Purchased at a discounted/gifted price
£190,000 – Todays Value / Sale Price


The question I have is, in terms of Capital Gains Tax, what is my liability. If it is as straightforward as the price the property was bought for against the price it was sold for, then can anything be done about the gifted discount or reduced price under it's true market value?


Hope this is clear, but I am happy to provide further details

DoctorStrange

Are you planning on selling the home you're currently in and is that your main residence?

If so, I thought the additional SDLT rules didn't apply as you're replacing your main residence?

If you're planning on keeping your current home then even by selling the second home you'd still be liable for the higher rate SDLT.

Linton

You and your father are "connected persons" so for the purposes of CGT you are assumed to have bought, and your father sold, your father's house at the market price. Was the house father's home? If so did he continue to live in it?