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Capital Gains Tax on Selling a House
shM1854
Posts: 3 Newbie
in Cutting tax
Hi
My mum signed over her house to my six siblings and I in 2008. My mum is now dead and the seven of us have now agreed to put it up for sale. The house is probably going to sell for about £240k meaning my one seventh share will be approximately £34k. When the house was first given to the seven of us by mum it would have been worth about £160k. Over the years I have spent a few thousand pounds towards the upkeep of the property.
My mum signed over her house to my six siblings and I in 2008. My mum is now dead and the seven of us have now agreed to put it up for sale. The house is probably going to sell for about £240k meaning my one seventh share will be approximately £34k. When the house was first given to the seven of us by mum it would have been worth about £160k. Over the years I have spent a few thousand pounds towards the upkeep of the property.
Can you tell me if I will have to pay Capital Gains or any other tax when the house is sold?
Will what I earn in my job have a bearing? My salary is just under £80k per year.
Thanking you in anticipation.
Will what I earn in my job have a bearing? My salary is just under £80k per year.
Thanking you in anticipation.
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Comments
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Sale £240,000, cost £160,000, gain £80,000. One seventh is £11,429, which is within your annual exemption of £12,300 (unless used elsewhere), so on these figures, there should be no tax to pay.
Costs of sale (legal and estate agent) may be deducted from sale proceeds. Upkeep is not deductible. If the figures change and tax is payable, you need to report the gain and pay the tax (28% rate probably, given your salary) within 30 days of completion:
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax
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