Capital Gain Tax on council flat

Bookworm105

Broly said:

That I know, I am not sure if it will be considered as purchase the 178.1k or the 290k. I guess the 178.1k but need reassurance.

I have told you already, gain is from what you originally paid to what you sell it for. Not what it was "valued" at

Broly

That is what I was afraid, thanks for you help! I don't think I will sell it then. I will remortgage and put it on rent

Bookworm105

Broly said:

That is what I was afraid, thanks for you help! I don't think I will sell it then. I will remortgage and put it on rent

that just shows you have not understood any of explanation regarding your liable period(s) 
you will still face CGT when sold, but the amount will be more since it will have been owned for longer.

Broly

Remortgaging is considered sold? I am sorry but I have no basic knowledge at all. Because on my understanding, when I sais I will not sell it but remorgaging I thought I will not have to pay this CGT ever as long as I own the property.

Nomunnofun1

Broly said:

Remortgaging is considered sold? I am sorry but I have no basic knowledge at all. Because on my understanding, when I sais I will not sell it but remorgaging I thought I will not have to pay this CGT ever as long as I own the property.

I think the point being made is -  the longer that you own the property which is no longer your main residence, the more CGT you will ultimately pay when it IS sold due to 

a) any value increase
b) decreasing proportion of total period of ownership where it WAS your main residence.

Mortgages, remortgages are irrelevant. 

Broly

Hi Bookworm105, if my questions are so basic to you that upsets you, why do you even border to answer? Before openning the post I already knew I have to pay this tax when I sell it and will count from the time I do not live there. Read my first post what my questions where: Do I have to pay tax on the discount as well? What is the procedure for my mother to gift me her half. The 1st question (the important one)  was only properly answer after 8 or 9 posts and the 2nd has not yet answer.
If you get annoyed by tryng to help me, just stop. Please stop trying to show how stupid or lazy I am and help other people who deserves it more.
Thanks
PS: I still understand that if I remorgage and keep it on rent and use this money to buy a house, I will not have to pay this tax as I will not sell it.

Nomunnofun1

Broly said:

Hi Bookworm105, if my questions are so basic to you that upsets you, why do you even border to answer? Before openning the post I already knew I have to pay this tax when I sell it and will count from the time I do not live there. Read my first post what my questions where: Do I have to pay tax on the discount as well? What is the procedure for my mother to gift me her half. The 1st question (the important one)  was only properly answer after 8 or 9 posts and the 2nd has not yet answer.
If you get annoyed by tryng to help me, just stop. Please stop trying to show how stupid or lazy I am and help other people who deserves it more.
Thanks
PS: I still understand that if I remorgage and keep it on rent and use this money to buy a house, I will not have to pay this tax as I will not sell it.

If your mother gifts you her half now and moves out immediately there is no CGT implications for her as she has lived in it throughout ownership. 

You will acquire her half at market value at the time of the gift. You would need to obtain a formal valuation in the event that you do sell it at some time in the future. 

When you do sell it you will be able to claim relief for the period that it was your private residence. This is calculated by apportionment and will diminish the longer that you own it as you also have now moved out. 

You mention that you intend to rent the property - clearly you would need to declare this income under self-assessment. 

uknick

If your mother is non resident for UK tax purposes she might be able to significantly reduce any CGT when she transfers the flat to you.

Have a look at this link;

Work out your tax if you're a non-resident selling UK property or land - GOV.UK

With regard to your comments about people trying to help, you have indicated an issue that needs solving which could have tax implications you may not have considered, therefore expect to get answers that may be more complicated than you first thought. 

Nomunnofun1

uknick said:

If your mother is non resident for UK tax purposes she might be able to significantly reduce any CGT when she transfers the flat to you.

Have a look at this link;

Work out your tax if you're a non-resident selling UK property or land - GOV.UK

With regard to your comments about people trying to help, you have indicated an issue that needs solving which could have tax implications you may not have considered, therefore expect to get answers that may be more complicated than you first thought. 

Mother isn’t moving abroad for a ‘few months to a year’

sheramber

You also need to consider possible Stamp Duty Tax if your mother gifts you her share of the property.