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What should we do ? - tax implications etc
jessmjc
Posts: 21 Forumite
Folks
My girlfriend has just moved in with me - my house is owned outright and I don't have a mortgage, its worth approx £300K. We plan to make this home our home.
Her home is also mortgage free and worth approx £90 - 100K, it is approx 50 miles from our home.
What should she do with her home ? Sell it ? What should she do with the cash ?
or should she rent it out ?
What are the tax implications ? Would she have to pay capital gains tax ?
Thoughts and opinions welcome,
jessmjc
My girlfriend has just moved in with me - my house is owned outright and I don't have a mortgage, its worth approx £300K. We plan to make this home our home.
Her home is also mortgage free and worth approx £90 - 100K, it is approx 50 miles from our home.
What should she do with her home ? Sell it ? What should she do with the cash ?
or should she rent it out ?
What are the tax implications ? Would she have to pay capital gains tax ?
Thoughts and opinions welcome,
jessmjc
0
Comments
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if she sells her home there is no CGT to pay0
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If she lets it out and then later sells it, she probably won't have to pay CGT either, as there are many reliefs for BTLs which are people's former PPRs.Trying to keep it simple...
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Do things for the right reasons, not solely the tax situation.
She could rent her place out and sell later, better to have a bolt hole to return to if things don't work out with you.
For tax purposes, she would not pay tax on the last 3 years of ownership and would be eligible for letting relief (max 40k), so it will be years before she was looking at a tax bill.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.0 -
Well done for paying off your mortgage. How did you do it and how long did it take you to do? I feel like I could only dream of that. Any tips 0
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