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CGT on Buy to Let Property
LJHev
Posts: 6 Forumite
Hi - I wonder if anyone can advise (I'm in the process of engaging an accountant but just wanted some early high level advice on a couple of points). I'm currently selling a property that I have owned for 25 years (lived in for 10 and rented out for 15).
I have a couple of questions on 2 areas, as to CGT -
1) - I originally bought the property with my ex for £76K, I then bought him out a couple of years later for an additional £15k - can I include this £15k in my purchase costs?
2) I need to leave £6k retention with my solicitors to cover costs (leasehold property - major works) - can I include this as part of the selling costs?
Many thanks
I have a couple of questions on 2 areas, as to CGT -
1) - I originally bought the property with my ex for £76K, I then bought him out a couple of years later for an additional £15k - can I include this £15k in my purchase costs?
2) I need to leave £6k retention with my solicitors to cover costs (leasehold property - major works) - can I include this as part of the selling costs?
Many thanks
0
Comments
-
1. yes. Your calculations are based on owning half the property for 38k 25 years ago and the other half 23 years ago for 53k.
2. The 6k would reduce your selling price.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 -
Thank you (sorry maths isn't my strong point) does that effectively mean my CGT will be less due to this additional 15K even though for 2 years it was a joint property?
Thank you
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