Increasing in CGT vs house sale?

Flatulentoldgoat · 20 February 2021 at 5:40PM

I have family who are on the verge of selling a house. It's a second home. Unfortunately they've accepted a lower than ideal offer and it wasn't highly priced. The same type house was sold in 2018 for their asking price. The accepted offer is 9% less than this. When quizzed, the rationale behind accepting this low offer is that CGT is due to increase any way which would subtract the 9% any way.

Good / bad? I feel the logic here is fundamentally flawed.

eskbanker · 20 February 2021 at 5:50PM

There are no guarantees that CGT will definitely change but in any case, many people seem to have a blind spot when it comes to tax and would prefer to have 100% of nothing than 80-90% of something....

JGB1955 · 20 February 2021 at 5:54PM

Definitely flawed thinking. My father was desperate to try and keep his estate under the IHT level. It made absolutely no difference to us - anything over the threshold was still 60% more than nothing!