selling second home tax advise please

gamston

hi folks
about to sell a flat i got for my lad when he went to uni, 
happy to pay any tax that i have to but i want to make sure i only pay what is right
Paid 120K deposit 30K mortgage 90K (interest only)
had it 10 yrs, just my lad & girlfriend living in it (rent free)
as its an 1960's council flat i've had to pay my share of upgrades (door sercurity, loft insultion/check, windows upgrade/check)

once I take off the Legal, E/Agents, Mr's/my CG allowance 24K, there will be about 20K left to tax
can i claim costs of councils contractors survey's/checks (once every 5 yrs or so they check the UPVC windows, main door/sercurity, loft )
or can i only claim for any works they have to carry out ( replace door/sercurity,loft insulation)

also with the 20K profit is that shared 10k/10k with Mrs/me we are both basic rate tax payers

sheramber

Are you and Mrs joint owners of the flat?

p00hsticks

can i claim costs of councils contractors survey's/checks (once every 5 yrs or so they check the UPVC windows, main door/sercurity, loft )

or can i only claim for any works they have to carry out ( replace door/sercurity,loft insulation)

I don't believe that maintenance/ repair/replacement costs can be deducted when calculating your CGT, only things that count as improvements. So, for example if single glazed windows were replaced with double glazed ones, that counts as an improvement, whereas a like for like replacement wouldn't. But I'm not an expert.

sheramber

You would be better posting in the cutting tax thread.

gamston

yes joint holders of the flat

canaldumidi

As joint owners (assuming 50/50) you each receive 50% of the sale price, and can each use your respective CGT allowances. See also

https://www.gov.uk/tax-sell-property

Deduct costs

You can deduct costs of buying, selling or improving your property from your gain. These include:

• estate agents’ and solicitors’ fees
• costs of improvement works, for example for an extension (normal maintenance costs, such as decorating, do not count)

theartfullodger

Advice?  Pay tax expected promptly and cheerfully.  Currently HMRC expect declaration and payment of CGT within 30 days of sale.  (Did one last year). Or there are penalties.

dimbo61

You can deduct selling and buying costs.
You could have deducted the Interest you paid on the mortgage from your rental profit BUT you didn't charge your son any Rent !
Not sure you can get that kind of BTL mortgage from any high street lender.