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House selling advice needed please
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My_perfect_cousin
Posts: 60 Forumite
Hi. In the coming months we will be selling a house that we used to live in before renting it to tenants. The tenants have given notice that they will leave the property. I wonder whether anyone can help with these questions please? I have searched on the internet but am getting conflicting answers to my questions. TIA.
1. Home Information Pack. Has this been reduced to the EPC only (I have a current EPC)? What other info will I be required to provide?
2. Capital Gains Tax on sale. We will have potentially owned the property for 420 months at the date of the sale. Of that time we lived in it for 31 months. Would the capital gain be a percentage equal to 40 (31 + 9) / 420 x 100 = 95.2%?
3. Capital Gains Tax on sale. As the sale is likely to take place in the current (2022/23) financial year, how is the % rate determined as 18% or 28%? Is the rate set at my tax band for 2022/23 or my estimated tax band for 2023/24?
4. Capital Gains Tax on sale. Will the capital gain be added to my income for 2023/24 and thus increase my taxable earning and thus have the potential for some of the gain to be taxed at different rates?
5. Capital Gains Tax on sale. If I was to use a solicitor to transfer part of the ownership of the house to my wife (we live together) prior to the sale and sell before 01.04.24 (as planned) I believe that we would we both be able to claim the £6000 CGT allowance? At 18% CGT this would potentially save £1080 and at 28% CGT would save £1680. Is it likely that such a change would significantly delay the sale of the house and/or be negated by the likely fees for the work from a solicitor?
Any other advice would be really appreciated.
1. Home Information Pack. Has this been reduced to the EPC only (I have a current EPC)? What other info will I be required to provide?
2. Capital Gains Tax on sale. We will have potentially owned the property for 420 months at the date of the sale. Of that time we lived in it for 31 months. Would the capital gain be a percentage equal to 40 (31 + 9) / 420 x 100 = 95.2%?
3. Capital Gains Tax on sale. As the sale is likely to take place in the current (2022/23) financial year, how is the % rate determined as 18% or 28%? Is the rate set at my tax band for 2022/23 or my estimated tax band for 2023/24?
4. Capital Gains Tax on sale. Will the capital gain be added to my income for 2023/24 and thus increase my taxable earning and thus have the potential for some of the gain to be taxed at different rates?
5. Capital Gains Tax on sale. If I was to use a solicitor to transfer part of the ownership of the house to my wife (we live together) prior to the sale and sell before 01.04.24 (as planned) I believe that we would we both be able to claim the £6000 CGT allowance? At 18% CGT this would potentially save £1080 and at 28% CGT would save £1680. Is it likely that such a change would significantly delay the sale of the house and/or be negated by the likely fees for the work from a solicitor?
Any other advice would be really appreciated.
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Comments
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If you haven’t already sold it, surely you’ll be selling in tax year 23/24?2006 LBM £28,000+ in debt.
2021 mortgage and debt free, working part time and living the dream0 -
Yes. That's the plan.0
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“As the sale is likely to take place in the current (2022/23) financial year,” isn’t our current financial year 23/24 i.e. 1 April 2023 to 31 March 2024?
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yes - it was a typo. (2023/24)0
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