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Do we need to pay capital gains tax?
abbiewaye
Posts: 6 Forumite
Hi everyone!
Would love some advice on whether we need to pay capital gains tax. Here is our situation:
- me and my partner (unmarried) currently live in a house owned by my partner’s mum (she also has a house with her husband)
- we have just sold the house (it has gone up in value) & me and my partner have bought our own house
Do we (strictly my partner’s mum) need to pay CGT?
Would love some advice on whether we need to pay capital gains tax. Here is our situation:
- me and my partner (unmarried) currently live in a house owned by my partner’s mum (she also has a house with her husband)
- we have just sold the house (it has gone up in value) & me and my partner have bought our own house
Do we (strictly my partner’s mum) need to pay CGT?
Is there any difference if she gave the house that’s now sold as a gift to my partner (aside from who is liable for any tax?)
Thank you for any thoughts
Thank you for any thoughts
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Comments
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Your partner's Mum needs to pay CGT on the sale of the house (all sales of residential property in the UK attract CGT UNLESS it was the owner's main home. ). There is no difference if she gave is as a gift to your partner, other than that a valuation would need to be done to work out the value of the gift.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
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Your partner's Mum will have a Capital Gains Allowance of £12,300
I would be most surprised that the solicitor selling the property has not informed your partner's Mum about this and the Tax needs to be paid with 60 days.
https://www.gov.uk/tax-sell-property
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Mum must both declare and pay PAY! within 60 days of sale.
I'd be surprised if there's not some to pay.
NB for everyone, don't believe the "you only need to keep records for 6 (or 7) years". For CGT you need records from purchase (fees etc, price) plus improvements &etc etc. Or pay more Tax!0 -
abbiewaye said:...Is there any difference if she gave the house that’s now sold as a gift to my partner (aside from who is liable for any tax?)Earlier comments seem to sum up, but I'm bemused. Did she or did she not gift the property to your partner, and if so, when, and what was the value of that gift at the time it was gifted?Also, tobe clear:Do we need to pay capital gains tax?we have just sold the house (it has gone up in value)No you don't need to pay CGT. No you have not sold the house.
Do we (strictly my partner’s mum) need to pay CGT?
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