CGT when selling Question

Rogerrabbit777

I understand and respect your comment but no gain was made as the rent on the house they were living in was more than what they were getting from renting their home out for. So they were actually in a negative so to speak.it just seems illogical how those type of people mentioned above are treated the same as a property developer/professional landlord running a business inorder to make money. Even more so when they have now returned to the house and are living in it full time again. You would think as it was their primary residence,even if after a given time nothing would be due as it was their home. But as i guess this doesnt effect those who make the laws they dont care.

Yes they have returned to live in the house and originally thought that as it was now their primary residence again there would be no CGT as it was their one and only home. I guess they will have to decide whether  to live in it for the rest of their days or pay £7k plus for the privilege of selling it and moving somewhere else.They were already struggling with the financial aspects of downsizing as its hard to downsize much on their budget and area but to lose upwards of ten k out of their life savings is quite a blow for them. Tbh I think they would prefer to return abroad as the UK cost of living/low quality of life  interms of council tax utilities and food is quite a worry to them and thats before you think of the state of the NHS as they have health issues.

thank you all for your comments and advice. Much appreciated 

CSI_Yorkshire

Rogerrabbit777 said:

I understand and respect your comment but no gain was made as the rent on the house they were living in was more than what they were getting from renting their home out for. 

To be fair, that's just not true though.

They have made a substantial gain in asset value.

How much they decided to charge in rent or or pay in rent for their alternative accommodation is essentially irrelevant for that discussion.

Rogerrabbit777

CSI_Yorkshire said:

Rogerrabbit777 said:

I understand and respect your comment but no gain was made as the rent on the house they were living in was more than what they were getting from renting their home out for. 

To be fair, that's just not true though.

They have made a substantial gain in asset value.

How much they decided to charge in rent or or pay in rent for their alternative accommodation is essentially irrelevant for that discussion.

Yes they have made a gain but so has everyone else that owns a property.  All properties have made a gain over the last 9 years unless very unlucky., why should someone who has to move for work or for personal reasons who has to rent because they cant afford to buy then be punished for it?it makes no sense for these type of people to be treated the same as a property developer or someone running a business for profit. In fact those people are better off as they can buy the house move into it for five mins while doing it up then claim it as their main residence then re sell as shown in precedent cases. If people cant see the inheritant unfairness of someone having to move to find work and then having to  pay thousands in CGT  when they had to rent in the first place as they couldnt afford to buy  then i guess for those types of people its something they dont need to worry about as they have enough money to probably own several properties and hand out money to the kids ontop.

babyblade41

Although you deem it unfair it is still a business, and as any business tax is due , the choice was they could have sold it to move abroad rather than have a rental business where their asset would invariably rise plus the income coming in for the rent.

It's why it's called a capital gain , it goes into the coffers and helps to pay for other things we all use .I use to hate seeing my CGT bills over the years but it is built into any future financial equation