Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

How can i avoid a huge tax bill if i sell.?

18 months ago my husband died leaving me a huge Victorian house which is let into flats,6 flats are let and my husband and i lived in the equivalent of two flats which we made into one.I believe,should i sell,i will have to pay up to 80% of the value of the property in capital gains tax.
Is there  any way of avoiding paying so much?


  • user1977
    user1977 Forumite Posts: 11,715
    10,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    edited 30 April 2021 at 3:26PM
    You posted about this a month ago and got some useful responses - haven't you read those? Would be easier if you just continue that thread.
  • davilown
    davilown Forumite Posts: 2,303
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Let me get this correct - you inherited the flats 18 months ago?

    I think simplistically looking at it you’ll pay capital gains on the difference in value from 18 months ago to today’s value of 4 of the flats (if you keep the other 2 as one).
    so if they were valued for probable at £100,000 18 months ago, and you sell for £105,000 now, you’ll pay capital gains on the £5k difference on each flat.

    Obviously, you’re best off speaking to your financial advisor to work it out for you.
    30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.
  • moneysavinghero
    moneysavinghero Forumite Posts: 1,761
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    Where are you getting 80% from? And it won't be based on the value of the property its Capital GAINS tax, it based upon how much the property has gone up in value since you inherited it.
  • ProDave
    ProDave Forumite Posts: 3,363
    Sixth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 30 April 2021 at 3:53PM
    Sell one flat each year, and you get to use up that years capital gains tax allowance.  Repeat each year and you have reduced your tax bill quite legally. (assuming you are not otherwise already using up your capital gains tax allowance)

    Basic rate capital gains tax is 18%  Are you sure you did not miss hear that and heard 80%?
  • pbartlett
    pbartlett Forumite Posts: 1,397
    1,000 Posts Name Dropper
    The flat you live in will not be subject to CGT when you sell - assuming it is your main residence.

    The other 6 flats should be individually valued as of the date you inherited. 

    I assume that, unless they are identical, each one will have a different value.

    For each flat, when you sell it, you work out the increase in value ie the selling price less the inherited valuation. From this 'profit', you are allowed to deduct selling fees eg estate agents fees, solicitor fees etc. Also any money you have spent on the flat getting it ready for sale eg if you put in new windows, new boiler etc

    This gives you (for that flat), the net profit which is taxed at 40%, although as above you have a yearly allowance which you can also use up.

    Repeat for each flat you sell.

Meet your Ambassadors


  • All Categories
  • 338.8K Banking & Borrowing
  • 248.6K Reduce Debt & Boost Income
  • 447.5K Spending & Discounts
  • 230.7K Work, Benefits & Business
  • 600.8K Mortgages, Homes & Bills
  • 171K Life & Family
  • 244K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards