Property capital gains tax

CEON44

I'm in the process of selling a buy to let property I own.  Just wondering how to work out the capital gains tax, or even find a way to avoid it altogether
The figures are around:  Bought for £58k.  Will sell for £80k.  I am married and the house is in my name. Anyway to offload the tax by gifting it to my wife?

KiwiCoop

I think you would have to put the house in joint names to use her CGT allowance which would obviously incur fees, time, and maybe even have SDLT issues.  After using your own allowance and deducting expenses incurred at purchase and sale and anything in between, you'll probably only be liable for a gain something closer to £5k?  From April 6 a CGT return has to be submitted if tax is due, then included in your self-assessment.  If you don't do self-assessment and there's no CGT due then no return has to be submitted.  I'm no accountant by the way, just deal in property a bit and have been reading up on this due to buying a BTL soon...

CEON44

KiwiCoop said:

I think you would have to put the house in joint names to use her CGT allowance which would obviously incur fees, time, and maybe even have SDLT issues.  After using your own allowance and deducting expenses incurred at purchase and sale and anything in between, you'll probably only be liable for a gain something closer to £5k?  From April 6 a CGT return has to be submitted if tax is due, then included in your self-assessment.  If you don't do self-assessment and there's no CGT due then no return has to be submitted.  I'm no accountant by the way, just deal in property a bit and have been reading up on this due to buying a BTL soon...

OK, so I'm able to deduct buying and selling expenses as well my own allowance threshold? I normally do a self assessment yearly but i assumed that was different to capital gains?. 

Old_Git

CEON44 said:

KiwiCoop said:

I think you would have to put the house in joint names to use her CGT allowance which would obviously incur fees, time, and maybe even have SDLT issues.  After using your own allowance and deducting expenses incurred at purchase and sale and anything in between, you'll probably only be liable for a gain something closer to £5k?  From April 6 a CGT return has to be submitted if tax is due, then included in your self-assessment.  If you don't do self-assessment and there's no CGT due then no return has to be submitted.  I'm no accountant by the way, just deal in property a bit and have been reading up on this due to buying a BTL soon...

OK, so I'm able to deduct buying and selling expenses as well my own allowance threshold? I normally do a self assessment yearly but i assumed that was different to capital gains?. 

buying ,selling and improvement costs are tax deductable for CGT Not repair costs .Improvement costs include kitcchens bathrooms 

KiwiCoop

CEON44 said:

KiwiCoop said:

I think you would have to put the house in joint names to use her CGT allowance which would obviously incur fees, time, and maybe even have SDLT issues.  After using your own allowance and deducting expenses incurred at purchase and sale and anything in between, you'll probably only be liable for a gain something closer to £5k?  From April 6 a CGT return has to be submitted if tax is due, then included in your self-assessment.  If you don't do self-assessment and there's no CGT due then no return has to be submitted.  I'm no accountant by the way, just deal in property a bit and have been reading up on this due to buying a BTL soon...

OK, so I'm able to deduct buying and selling expenses as well my own allowance threshold? I normally do a self assessment yearly but i assumed that was different to capital gains?. 

I believe there is a CGT section within the self-assessment return but as I'm not registered for SA don't quote me.  Keep an eye on the budget this week also, there will be tax moves of some description.

qwert_yuiop

Anyone got any opinions on the property market in these turbulent times? A lot of people aren’t as rich as they were at the start of the year, me included.

qwert_yuiop

Yoicks. Just checked the news. A lot of people aren’t as rich as they were last night.
Relieved to learn this virus doesn’t seem to hit children as hard as adults. 

Look after your lungs, everyone. 

guiriman

Your annual Capital Gains allowance is around £12k so you'll only pay tax on any excess on that (after buying/selling fees and improvement costs)

pjcox2005

Couple of points:
- Ever lived in the property as primary residence as that could reduce the bill.
- Are you and wife both same rate tax payers e.g. basic rate or high rate? If not the CGT is going to be less for the lower earning partner.
- As above you get £12k annual exemption each on chargeable gains? Has any been utilised to date.

It sounds like you need to gift part of the property to your spouse. Legal fees can be incurred but it doesn't technically need to be changed at land registry although you may need to consider any issues if property is mortgaged. Should be no SDLT issues given the value of the house.