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Selling my 2nd/main home...confused :)
daviduk1976
Posts: 378 Forumite
Hi Guys.
Long story short!
We moved from London to Manchester 6 years ago. Hated my new job, so old company took me back. As not to waste money renting we bought another flat. Lived there for 5 years as my main home Monday to Friday and go home to Manchester at weekends. I now have a new job back north and flat is now on the market. As I lived there as my main home, what tax are we liable for on selling it as its in both our names?
Thanks
David
Long story short!
We moved from London to Manchester 6 years ago. Hated my new job, so old company took me back. As not to waste money renting we bought another flat. Lived there for 5 years as my main home Monday to Friday and go home to Manchester at weekends. I now have a new job back north and flat is now on the market. As I lived there as my main home, what tax are we liable for on selling it as its in both our names?
Thanks
David
TOTAL 2013 £3100 :eek:
TOTAL 2014 £1250
TOTAL 2015: £500 winning:2 tkts to theatre, Cap1 Footie, weeks holiday in lakes.
TOTAL 2014 £1250
TOTAL 2015: £500 winning:2 tkts to theatre, Cap1 Footie, weeks holiday in lakes.
0
Comments
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I should have added my partner stayed home in ManchesterTOTAL 2013 £3100 :eek:
TOTAL 2014 £1250
TOTAL 2015: £500 winning:2 tkts to theatre, Cap1 Footie, weeks holiday in lakes.0 -
You cannot have two main residences so it sounds like Manchester remained your main residence and you will be liable for CGT on the London sale.0
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More specifically, I believe a couple can only have one main residence for tax relief purposes.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
An unmarried couple can have a different residence each. A married couple can only share one.theoretica said:More specifically, I believe a couple can only have one main residence for tax relief purposes.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.2 -
You will probably find similar threads on the tax board here:
https://forums.moneysavingexpert.com/categories/cutting-tax
First question is whether both properties are in both names and whether you are married. I'm assuming you didn't make a declaration to hmrc at any time on which you consider to be your main home.
Certain facts would support your flat being your residential home, like living there 4 or 5 nights a week. But the way you worded your post suggests that you may consider Manchester to be your home eg which address do you use on paperwork? where is your doctor's surgery etc?
Basically, you take the selling price minus the buying price less buying and selling costs and that is your profit. You each have a CGT allowance of 12.5k if not used elsewhere, so can take 25k of the profit. That would then be your CGT liability. Then you need to check your marginal tax rate as there are different rates for CGT depending on your income.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
If they are not married or in a civil partnership they can. Having said that the OP had a two year window from the date they purchased the London property to make a declaration on which of the 2 properties was his main residence. If he failed to declare the London property as his main residence in that time then it will still be the Manchester property and CGT will apply to the sale.theoretica said:More specifically, I believe a couple can only have one main residence for tax relief purposes.
https://www.taxinsider.co.uk/how-to-nominate-and-vary-your-main-residence-ta
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Thanks for your help!
We bought the property for 75k and selling for around 90k. We are a married couple too. I have just looked at the CGT thingy - looks like we wont pay anything - unless I am confused lolTOTAL 2013 £3100 :eek:
TOTAL 2014 £1250
TOTAL 2015: £500 winning:2 tkts to theatre, Cap1 Footie, weeks holiday in lakes.0 -
No CGT to pay providing you don’t have any other gains that have used up your annual allowances.daviduk1976 said:Thanks for your help!
We bought the property for 75k and selling for around 90k. We are a married couple too. I have just looked at the CGT thingy - looks like we wont pay anything - unless I am confused lol1 -
Thanks for your help guys xxTOTAL 2013 £3100 :eek:
TOTAL 2014 £1250
TOTAL 2015: £500 winning:2 tkts to theatre, Cap1 Footie, weeks holiday in lakes.0
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