new cgt rules, need help please,my brain hurts!

sparklycat

Hi,

I've asked questions on CGT before and just about understood it! but now in a different position. We have a house that is owned equally between my husband and his mum, we moved into the property last year due to my husband changing jobs(was in army).we ahd it rented out until then. (We previously lived abroad , due to his job and had intended to live inthe property prior to that.)We lived in the house until dec 2007(moved in Apr 2007) when my husband joined the civil service and was offered a new job out of the area, so we decided to sell . We are now renting and waiting for a while until we buy again(much rather have money in bank , thanks very much!)
But, what are the new cgt rules from apr? would it make any difference to us to wait until afterApr?(his mum has a 2nd home so guess the new rules will benefit her?)we are trying to sort out not paying CGt as my husband has been and is classed a crown servant.

House bought in 2000 for £100,000
valued in Nov 2007-£270,000:)
If sold for asking price our profit would be £135,000 each but we have a mortgage of £64,000.

if we do have to pay CGT what would it be?it's all very confusing and giving me a headache!!any ideas?

Thanks(sorry if you've lost the plot after reading this , i have!)

silvercar

If you lived in the property as your principal private residence, you are exempt from CGT for the time it was your home and the last 3 years of ownership.


You don't say for how long you have owned it, but if it is less than 3 years and the above applies there will be no CGT to pay. If you have owned it for longer you may be able to use letting relief. For your MIL there could well be a CGT liability on her half. Sell before April and the tax will be at her marginal rate but she will be eligible for taper relief. After April the tax rate is 18%.

Post some dates and we can make a more detailed response.