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Tax help
cluelesscookie
Posts: 4 Newbie
in Cutting tax
Advice please. I inherited my late parents house just over 2 years ago. It was valued at the time at four hundred and fifty thousand. I have ran it as a holiday let for this year. I am now considering selling. What is the best way to keep capital gains tax to a minimum?
Many thanks.
Many thanks.
0
Comments
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How much do you anticipate selling it for?1
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Valuers are coming Wednesday. I expect it has increased as everything else has. Maybe sixty thousand more? I won't know just yet.0
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Best way would be to sell your home and move into it yourself. After a couple of years you may need to move again, but may avoid any tax as it will be your principal residence.I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.1
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It may reduce the tax, but main residence relief covers only periods of occupation as main residence, plus the last 9 months (if not covered as a period of occupation otherwise), and there can be other periods covered, but not in this case.SeniorSam said:Best way would be to sell your home and move into it yourself. After a couple of years you may need to move again, but may avoid any tax as it will be your principal residence.
Presumably OP is not married or in a civil partnership?1 -
I do not want to sell my home. I have been living with my partner for over 10 years but we are not married.0
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If you can't live in it, and you can't transfer a share of it without tax, there isn't really anything you can do to reduce the tax on a sale.2
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OK, thanks for that. I know what to expect now.0
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If you use it as a holiday let for at least two years there is entrepreneurs relief, can you operate it as such for another year so as to qualify?cluelesscookie said:Advice please. I inherited my late parents house just over 2 years ago. It was valued at the time at four hundred and fifty thousand. I have ran it as a holiday let for this year. I am now considering selling. What is the best way to keep capital gains tax to a minimum?
Many thanks.
https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2021
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Have you made any substantial improvements to the house? If so, that could mitigate the CGT. I used accountants when I sold a rental flat (not ever lived in myself and was held in my name) but I got mitigation due to improvements.1
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