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Capital gains tax

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mamajane11
mamajane11 Posts: 1 Newbie
in House buying, renting & selling
Hi all,
I own 2 properties, one is my main residence and the other is a rental property which ive let out since ive owned it from 1996.
I am mortgage free.
I paid £43,000 for the rental property and its now worth around £500,000
Does anyone know what the CGT would be if i were to sell it now?
Other than that if i were to gift it to my daughter and she would live there, would i still have to pay CGT and if so, how much?

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  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    HMRC have a good website for working out capital gains


    https://www.gov.uk/tax-sell-property/work-out-your-gain


    I would tread carefully on gifting property to relatives. Is it somewhere she will want to live in ? she will be losing her FTB status and the perks that come with it


    Get tax advice if you are still willing to do this
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    mamajane11 wrote: »
    its now worth around £500,000

    if i were to gift it to my daughter and she would live there
    csgohan4 wrote: »
    I would tread carefully on gifting property to relatives. Is it somewhere she will want to live in ? she will be losing her FTB status and the perks that come with it

    For a genuine gift of half a million, I wouldn't worry about losing FTB status.
  • Slithery
    Slithery Posts: 6,046 Forumite
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    mamajane11 wrote: »
    Does anyone know what the CGT would be if i were to sell it now?
    Around £170k.
    Other than that if i were to gift it to my daughter and she would live there, would i still have to pay CGT and if so, how much?
    Makes no difference - still around £170k.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    You still have to pay CGT on the correct value not the undervalue. As above carefully complete the CGT calculator. It asks questions about undervalues etc.

    Im in a similar position ( Im gifting a house to my son at the mortgage value of £220K but I’ll still be assessed on capital gains at the true value of £400k which you have to complete a form and get HMRC to agree true value )
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